AID SHIPMENTS TO GAZA CONTINUE, AD HOC RULES

UNCLAS SECTION 01 OF 02 JERUSALEM 000440 SENSITIVE SIPDIS NEA FOR FRONT OFFICE AND IPA; PRM FOR WITTEN; NSC FOR SHAPIRO/PASCUAL, TREASURY FOR MOGER/AHERN PLEASE PASS TO USAID FOR BORODIN/NANDY/LAUDATO E.O. 12958: N/A TAGS: EAID ECON ETRD PHUM PREL PGOV PTER KWBG IS SUBJECT: AID SHIPMENTS TO GAZA CONTINUE, AD HOC RULES FRUSTRATE DONORS REF: JERUSALEM 360 ¶1. (SBU) Summary: International assistance agencies and NGO contacts report that unclear rules and ad hoc decision-making continue to hamper delivery of humanitarian aid to Gaza. For example, a high-level GOI decision was required to allow USG-provided jam and halva to enter Gaza, but the exemption is valid only for one week. Other items in the assistance package that were denied entry previously, including toothpaste, were approved without difficulty this time. The shortage of banknotes in Gaza has delayed disbursement of Palestinian Authority (PA) salaries and limited social welfare payments. Two additional truckloads of carnations were exported from Gaza, while the volume of goods and fuel entering Gaza through authorized crossings remained steady. End summary. Jam and Halva OK, but Only For One Week -------------- ¶2. (SBU) A dispute over a USAID assistance shipment of 7,138 family packets containing various food items, soap, toothpaste, and toothbrushes occurred on March 3, when the GOI ordered jam and halva, a local confectionery, removed from the boxes. The GOI initially gave verbal clearance to USAID for the shipment, but the NGO arranging delivery said the GOI later objected to halva and jam because of continued rocket fire from Gaza. The NGO reported that the issue rose to a high-level Israeli Ministry of Defense official, who approved the jam and halva for one week only, and ordered that tahineh (a sesame base for making halva) be removed from next week's shipments of more than 4,500 family packets. Pasta, chick peas, and lentils, the objects of a prior access controversy (reftel),were allowed entry without difficulty. A second NGO delivering USG assistance reported that the GOI denied access for flashlights, which the NGO had delivered in a prior aid shipment without incident. Rejected Macaroni to be Distributed in Egypt -------------- ¶3. (SBU) Sources at Mercy Corps said that although the GOI is now allowing pasta to enter Gaza, Israeli Customs refused entry to its 90 metric tons macaroni shipment on March 2 without providing a reason. (Note: The Mercy Corps shipment ignited the controversy over allowing pasta into Gaza. End note.) Mercy Corps now plans to distribute the pasta in Egypt. Ad Hoc Decisions Raise Costs -------------- ¶4. (SBU) According to international aid agency sources, on March 3, GOI authorities at Kerem Shalom crossing denied entry to 704 packets of washing powder because the cargo did not have an environmental certificate. The sources said an identical shipment passed through Kerem Shalom on February ¶26. ¶5. (SBU) A World Food Program (WFP) official told EconOff that what passes through Kerem Shalom often depends on the decisions of low-level crossing personnel. He said one official denied entry to high-protein biscuits one day, but, several days later, a different official allowed them to pass. He said WFP wasted large sums of money paying for transport and storage of rejected goods. He added that international aid agencies are requesting that the GOI clearly define the process for approval of relief items for Gaza to increase predictability and avoid additional charges for rejected cargo. UXO Equipment Verbally Approved -------------- ¶6. (SBU) Managers of the UN's unexploded ordnance (UXO) project reported that the GOI has verbally approved entry of their equipment. Whether the approval covers explosives needed in bomb disposal is not clear. Project managers added that they continue to negotiate with the GOI on a suitable UXO disposal site. Cash Shipments a Continuing Problem -------------- ¶7. (SBU) UNRWA sources reported that its cash assistance JERUSALEM 00000440 002 OF 002 programs have stalled due to banknote shortages. UNRWA and PA sources said the GOI has not approved cash requests except for UNRWA salary payments, leaving it unable to provide regular cash assistance to Gazan families or rental subsidies to 2,008 refugee families whose homes were destroyed in the fighting. PA salaries were credited to bank accounts on March 6, but bank branches in Gaza have not disbursed funds due to a lack of banknotes. Bank of Palestine sources said cash availability is back to the level of December 2008, when banks were forced to close for lack of banknotes. Second Export Shipment of Carnations -------------- ¶8. (SBU) PalTrade Gaza reported this week that two additional truckloads of carnations, the second and third export shipments since June 2008, passed through Kerem Shalom bound for The Netherlands. Volume of Food and Fuel Steady but Limited -------------- ¶9. (SBU) During the period March 1-6, between 100-120 truckloads/day of goods entered Gaza through Kerem Shalom, 30-50 truckloads/day of grains entered via the conveyor at Karni, and about 435,000 liters/day of industrial fuel for Gaza Power Plant entered through Nahal Oz. Spot shortages of cooking gas were reported. Aid agency sources said the GOI informed them that Sufa crossing will not reopen. WALLES