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
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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
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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
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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