PALESTINIAN AUTHORITY ASKS FOR FUNDS SEIZED FROM

C O N F I D E N T I A L JERUSALEM 002027 SIPDIS NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR SHAPIRO/KUMAR; TREASURY FOR KNOWLES E.O. 12958: DECL: 11/09/2019 TAGS: ECON EFIN KWBG KPAL PGOV KTFN EG AL SUBJECT: PALESTINIAN AUTHORITY ASKS FOR FUNDS SEIZED FROM HAMAS IN EGYPT; SEEKS USG ASSURANCES ON TRANSFER Classified By: Consul General Daniel Rubinstein for reasons 1.4 (b) and (d). ¶1. (U) This is an action request for State, please see para 3. ¶2. (C) In a November 6 meeting, PLO Chief Negotiator Saeb Erekat asked the Consul General for USG assistance in securing transfer to the Palestinian Authority (PA) Ministry of Finance of USD 32.5 million in funds seized by Egypt in December 2006. According to Erekat, these funds, which were confiscated from deposed PA Prime Minister Ismail Haniyeh as he returned to Gaza from a fund-raising tour to Arab States, now reside in an Arab League account. Erekat claimed that the Arab League has responded positively to PA requests for the funds, but has expressed concern that the funds would be attached during transfer and therefore asked for USG assurances. Erekat subsequently put this request in writing to the Consul General (full text at para 4). ¶3. (C) Action Request: The transfer of these funds -- raised by Haniyeh while Prime Minister ostensibly for the purpose of meeting PA obligations -- to Ramallah would be of immense political and practical value, particularly given the PA's current financial predicament. Post requests that the Department encourage Arab League and Egyptian officials to make the transfer, and provide appropriate assurances regarding the movement of the funds. ¶4. (SBU) BEGIN TEXT His Excellency Daniel Rubinstein Consul General US Consulate, Jerusalem November 6, 2009 Dear Consul General, This letter is to request your assistance with the transfer of the sum of $32.5 Million that is presently deposited in the custody of the Arab League, to the Palestinian National Authority. The Arab League has requested assurances from the US government that the money may be transferred without interference or delay to the coffers of the PNA through normal banking channels. The PNA would be grateful if you could take all necessary measures and provide us with the requested assurances so we can convey them to the Arab Leagues. Thank you for your assistance. Please accept the assurances of my highest considerations. Yours sincerely, Dr. Saeb Erekat Head Of Negotiations Affairs Department PLO END TEXT RUBINSTEIN