PRESS REPORT HIGHLIGHTS E-1 AGAIN

C O N F I D E N T I A L JERUSALEM 000239 SIPDIS NEA FOR FRONT OFFICE AND IPA. NSC FOR SHAPIRO/PASCUAL E.O. 12958: DECL: 02/04/2019 TAGS: KWBG PHUM ASEC IS PBTS SUBJECT: PRESS REPORT HIGHLIGHTS E-1 AGAIN REF: A. 07 JERUSALEM 2566 ¶B. 08 JERUSALEM 996 ¶C. 08 JERUSALEM 1232 ¶D. 08 JERUSALEM 2171 Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d) ¶1. (C) Summary. Israeli and Palestinian press reports on February 2-3 described GOI plans to develop the E-1 area between East Jerusalem and Ma'ale Adumim and highlighted approximately USD 50 million spent on infrastructure there over the past two years. The infrastructure described in the press reports is consistent with the roads, traffic circles, land grading and water/sewage systems reported by the ConGen over the past 18 months (reftels). On February 2, Poloffs observed no major changes on the ground at E-1. The PLO Executive Committee responded to the press reports by condemning the plans and urging USG intervention with the GOI. End summary. New Press Reports on E-1 -------------- ¶2. (C) Ha'aretz reported on February 2 that the GOI has spent approximately USD 50 million on infrastructure for E-1, preparing for construction of 3,500 housing units "to create a contiguous block between Ma'ale Adumim and East Jerusalem." Israeli Peace and Security Council member Col. (res.) Shaul Arieli told Poloff on February 2 that the Council was the source of the February 1 "Ha'aretz" article, saying the Council "wants to prepare the public for the implications of building E-1, and reveal the waste of public funds on the project." Poloffs Observe No Major Changes on the Ground -------------- - ¶3. (C) ConGen reported between May 2007 and January 2009 that the GOI built wide roads with traffic circles, graded and terraced hillsides, and installed water and sewage systems, street lamps and street signs in E-1 in addition to the police station. As noted in reftels, this additional infrastructure appears extensive for a police station and seems designed to accommodate additional growth. In June 2008, the GOI opened the E-1 police station, which serves as their new headquarters for the West Bank. ¶4. (C) Poloffs visited E-1 on February 2 and observed no changes since their last visit in early December, with the exception of a new 100-150 ft. cell phone tower next to the police station. A security guard at the police station told Poloffs that a private cell phone company built the tower. (Comment: Like other infrastructure in E-1, the cell phone tower seems designed for prospective needs, since PolOffs visiting Maale Adumim, E-1, and environs have always had adequate cellphone coverage. End Comment.) PLO Executive Committee Reaction -------------- ¶5. (U) The PLO Executive Committee on February 2 condemned GOI plans to establish 3,500 residential units in E-1. The ExCom said it will ask the UNSC to address the E-1 plan and demanded President Obama's personal intervention, saying that the plan will isolate Jerusalem from the West Bank and undermine the prospect of a permanent status agreement. ¶6. (C) Comment. The rapid and strong Palestinian reaction to the press report confirms that E-1 remains an important, flash button issue. E-1 is the last remaining open space between Jerusalem and the West Bank. Israeli construction in this area would sever East Jerusalem from the West Bank and deal a severe, possibly fatal blow to the possibility of a viable, contiguous Palestinian state. End comment. WALLES