MUNIB AL MASRI DISCUSSES RECONCILIATION, EARLY

C O N F I D E N T I A L JERUSALEM 000665


FOR NEA FRONT OFFICE. PLEASE PASS TO NSC SHAPIRO/KUMAR

E.O. 12958: DECL: 04/14/2019
TAGS: PGOV PREL IS KPAL KWBG
SUBJECT: MUNIB AL MASRI DISCUSSES RECONCILIATION, EARLY
ELECTIONS, AND AN INTERIM GOVERNMENT

Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).


1. (C) Summary: In an April 13 meeting with the Consul
General, independent Palestinian billionaire and PLO Central
Council member Munib Al Masri said national reconciliation
talks stalled on key questions concerning elections,
government formation, and the PLO. Al Masri said he
suggested "a cease-fire" between Hamas and Fatah and the
formation of an interim government without a political
program headed by Salam Fayyad while reconciliation talks
continue. Al Masri said elections are the only way to
resolve the impasse in the Palestinian political system. End
Summary.

Reconciliation Talks Deadlocked on Key Issues
--------------


2. (C) Meeting in Jerusalem, Al Masri briefed the Consul
General on Cairo reconciliation talks in which he
participated, he said, as a leader of Palestinian
independents. Al Masri said Fatah and Hamas deadlocked on
whether a government would "respect" (Hamas's preferred word)
or "commit to" (Fatah's preference) prior PLO agreements. Al
Masri said some participants believe Palestinian Authority
President Mahmud Abbas (Abu Mazen) does not want
reconciliation given Fatah negotiators' insistence that a
government explicitly endorse Quartet principles, a condition
Hamas publicly rejected before talks began. Al Masri said
Fatah and Hamas do not agree on the system of future
Palestinian Legislative Council (PLC) elections, with Fatah
insisting that all seats be elected by national proportional
representation while Hamas seeks half the seats to be elected
by constituency voting. Al Masri said, however, the parties
agreed to hold PLC elections no later than January 25, 2010.
On the PLO, Al Masri said Fatah and other factions rejected
Hamas's proposal to change the leadership structure,
insisting that Hamas participation must be as a member within
the existing PLO framework.

Interim Government Followed by Elections
--------------


3. (C) Characterizing the current situation facing
Palestinians as "a catastrophe worse than 1948", Al Masri
said he proposed at reconciliation talks the formation of an
interim government without a political program headed by
Salam Fayyad leading to elections within three months. An
interim government, he said, would seek to relax West Bank
movement and access, lead the reconstruction of Gaza, seek to
lift the "embargo" on Gaza, and organize elections, while
reconciliation talks continue. The Consul General noted that
any new PA government must be able to deal with Israel and
the international community to survive, and the Quartet
principles represent the only basis on which that is
possible. Al Masri suggested Hamas support has grown in the
West Bank in recent months, but he said an election will
serve as a referendum on Hamas which, he said, would lead the
nation into a "dark age." Al Masri said 20-40 PLC deputies
support his call for early elections. Al Masri emphasized
that elections are the only way to resolve the impasse in the
Palestinian political system.


4. (C) Comment: Al Masri, reportedly the richest
Palestinian, is an aspiring Prime Minister without
significant popular support. Married to an American and
educated in Texas, Al Masri seeks an active role by the USG
and sees himself as a partner to USG efforts. End comment.

WALLES