PRIME MINISTER FAYYAD ANNOUNCES RESIGNATION

S E C R E T JERUSALEM 000402 SIPDIS NEA FOR FRONT OFFICE AND IPA; NSC FOR SHAPIRO/PASCUAL E.O. 12958: DECL: 03/09/2019 TAGS: PGOV KWBG KPAL IS SUBJECT: PRIME MINISTER FAYYAD ANNOUNCES RESIGNATION Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d) ¶1. (S) Summary. Palestinian Authority Prime Minister Salam Fayyad announced his government's resignation on March 7, to take effect upon formation of a new government, but in no event later than March 31. Fayyad said he is resigning to facilitate formation of a new government. Fatah-affiliated sources characterized the announcement as a "tactic" and an expression of Fayyad's frustration with attacks on him by all sides, including Fatah, as well as PA President Abbas (Abu Mazen)'s failure to defend him. Sources close to Fayyad denied that the announcement is tactical and said Fayyad will resign at the end of the month even if there is no progress on forming a new government. End summary. PM Fayyad Resigns to Facilitate Reconciliation -------------- - ¶2. (U) On March 7, Prime Minister Fayyad announced his government's resignation, to take effect upon formation of a unity government, but in no event later than March 31. Fayyad said the government's resignation is designed to facilitate the reconciliation process and the formation of a new government. "We believe that the positive atmosphere embodied by the first round of the (national unity) Dialogue is a precious opportunity that should be utilized to terminate the current state of fragmentation," he said in a statement. PA FM and Minister of Information Riad al-Malki told a press conference that the cabinet had decided to freeze appointments and promotions until a new government is formed. ¶3. (U) The PLO Executive Committee released a statement praising Fayyad's decision to resign, calling it a "responsible" move in support of the unity dialogue. Hamas spokesman Fawzi Barhoum also welcomed the government's resignation, saying the Fayyad government lacked legitimacy from the start and had never served Palestinian interests. ¶4. (S) Abu Mazen was reported to have asked PM Fayyad to continue in his position until the outcome of a national unity dialogue process is clear. Senior PLO and Fatah officials told PolSpec, following the resignation announcement, that they do not want to see a vacuum in the PA if the dialogue process is not completed by the end of March, while PA officials close to Fayyad confirmed to PolSpec the PM's intent to leave office at the end of March, notwithstanding the status of the reconciliation process. PLO, Fatah Officials Discuss Possible Outcomes -------------- - ¶5. (S) Senior Fatah officials met on March 7 to discuss Fayyad's resignation. Fatah Revolutionary Council member Azzam al-Ahmad and Fatah official Samih 'Abd al-Fatah, an advisor to Abbas, gave PolSpec a readout of the meeting, which Fatah officials Nasir al-Qidwa and Sacher Bseiso also attended. Al-Ahmad and 'Abd al-Fatah said there are divergent opinions within Fatah on the prospects for reconciliation talks slated to begin March 10 in Cairo, with those closely involved in the dialogue, including al-Ahmad, more optimistic of Hamas' willingness to do a deal. Even if Hamas' intentions are genuine, they said, it will be unrealistic to expect an agreement on all outstanding issues, including security sector and PLO restructuring, in 20 days. If the talks with Hamas fail, al-Ahmad and 'Abd al-Fatah believe Abu Mazen intends to reappoint Fayyad to lead a West Bank-only government composed of officials from all PLO factions and technocrats. Fatah Members Suspicious of Fayyad's Motives -------------- ¶6. (S) A source close to Ahmad Qurei (Abu Ala) said many Fatah officials (including Azzam al-Ahmad, who was careful to avoid even private criticism of Fayyad) have expressed serious reservations about a reappointment of Fayyad. Sources said sentiments within Fatah run strongly against Fayyad. There are a number of theories circulating among Fatah leaders as to why Fayyad made his announcement, ranging from a pressure tactic to convince Fatah to blunt its public criticisms of Fayyad, to a tactic to pressure Abu Mazen into defending Fayyad and providing him political cover to continue as PM. Fatah officials also suggested that Fayyad is seeking genuine backing from all factions, following a successful dialogue, to lead a unity government -- an outcome they characterized as unlikely. WALLES