PM FAYYAD ON SECURITY AND WEST BANK ECONOMIC ISSUES

C O N F I D E N T I A L JERUSALEM 001229

SIPDIS

NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR SHAPIRO/KUMAR;
JOINT STAFF FOR LTGEN SELVA

E.O. 12958: DECL: 07/16/2019
TAGS: PGOV PREL PINS KWBG KPAL IS
SUBJECT: PM FAYYAD ON SECURITY AND WEST BANK ECONOMIC ISSUES

Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d).


1. (C) Summary. In a July 14 meeting, PM Salam Fayyad said
he is proud of gains in West Bank security but stressed again
the need to end IDF incursions. He also noted an improving
economy and cited the opening of a new theater in Nablus as a
key development. Finally, Fayyad stressed the importance of
ensuring the GOI allocate frequency for the Wataniya mobile
telephone network and said he was concerned that U.S. court
judgments are increasingly threatening the PA's viability.
End Summary.

FAYYAD STRESSES IMPORTANCE OF IDF-PASF COORDINATION
-------------- --------------


2. (C) In a July 14 meeting with LtGen Selva and the Consul
General, PM Salam Fayyad said he is proud of gains in West
Bank security. With regard to GOI-PASF coordination, Fayyad
said ad hoc coordination between the IDF and the PASF could
be improved. He urged that the Israelis use the existing
channels and not coordinate separately with each PA security
force. "All traffic should be directed through the (PA)
Office of Military Coordination," he said.


3. (C) Fayyad said he is seeking a broader and more complete
IDF suspension of operations in Area A. "We want something
consistent with our capacity," he said, noting that "the
Israelis themselves said after (the Qalqilya operation) that
we are improving. There is no justification for (their)
retaining the ability to conduct interdictions (in Area A).


4. (C) Fayyad said ending incursions is important to show
ordinary Palestinians that occupation on the ground is
ending. "I still think statehood is doable by 2011," he
said, adding "I want to dissolve the PA into the new state."
It is not enough to say the IDF will operate "with less
frequency." He noted the difficulty of maintaining morale
among PASF forces, at the same time Hamas accuses them
publicly of being "subcontractors" for the GOI. Ending the
occupation means these forces must feel a sense of
empowerment, he explained.


5. (C) Fayyad encouraged the USG to lower its public profile
on security assistance. "Frankly, I cared less about this
issue in the beginning," he noted, adding "but now I care
about...how I establish a sense of optimism (among PA
forces)." While noting his gratitude for USG assistance, he
said it is important for a lower U.S. profile to build morale
in the PASF and give the PA the credit for its
accomplishments.


CINEMA IN NABLUS A TURNING POINT
--------------


6. (C) Fayyad said preliminary growth estimates for the West
Bank would soon be revised upwards to reflect an improving
economic situation. He called the opening of a new movie
theater in Nablus - the first to open in the West Bank and
Gaza since all closed during the first intifada - a symbol of
how security and economic reforms are taking hold. While
growing up in Tulkarem, Fayyad said, there were two movie
theaters and two mosques. Today there are no theaters and
hundreds of mosques. The opening of a theater in a
conservative city in the West Bank could signal a turning
point in the PA's efforts to restore confidence and promote a
more tolerant civil society.


7. (C) Fayyad stressed the need for the GOI to allocate the
frequency for the mobile telephone operator, Wataniya.
Wataniya's launch will generate much-needed revenue for the
PA and demonstrate that large-scale foreign investment is
possible and profitable in the West Bank, he said. He also
expressed concern that recent U.S. court decisions threatened
the PA's viability "The circle is tightening on us," he
said, and asked the USG to intervene.


WALLES