NEW FAYYAD GOVERNMENT FORMED

C O N F I D E N T I A L SECTION 01 OF 05 JERUSALEM 000825

SIPDIS

NEA FOR FRONT OFFICE AND IPA; NSC FOR SHAPIRO/KUMAR; JOINT
STAFF FOR LTGEN SELVA

E.O. 12958: DECL: 05/19/2019
TAGS: PGOV PREL PINR KWBG
SUBJECT: NEW FAYYAD GOVERNMENT FORMED

Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d)


1. (C) Summary. A new Palestinian Authority (PA) cabinet
under the leadership of PM Salam Fayyad was sworn in on May
19 by PA President Mahmud Abbas (Abu Mazen). Coming after a
difficult, prolonged negotiation over Ministerial positions,
the new government includes representatives from four
political factions, including Fatah. Two ministers are yet
to be sworn in as they were blocked by Hamas trying to depart
Gaza. Speaking at a press conference on May 20 following the
government's first cabinet meeting, PM Fayyad stated the
government's commitment to the PLO political platform and
adherence to the PLO's previous commitments.


2. (C) The new cabinet includes strong additions,
particularly in the economic sphere, and maintains Fayyad's
personal control over the vital Ministry of Finance. While
Fayyad had hoped to retain the previous Minister of Interior,
with whom the USG has worked closely since 2007, Fayyad is
pleased with the newly appointed Minister, Said Abu Ali, whom
we know well and expect to be a cooperative partner. In
other areas, including Justice and Foreign Affairs, Fayyad
was unable to make the much needed changes he wanted. The
circumstances of the government's creation, particularly the
friction within Fatah, have weakened its political standing,
but it appears likely to provide Fayyad a more competent and
politically stronger cabinet than its predecessor.
Biographies below. End Summary.

A Government At Last
--------------


3. (U) Abu Mazen swore in a new PA government on May 19 in
Ramallah. The cabinet, under returning PM and Minister of
Finance Salam Fayyad, includes a total of 25 ministers and
ministerial-level portfolios. The cabinet includes
representatives from four political factions: ten ministers
affiliated or from Fatah, and one each from the Democratic
Front for the Liberation of Palestine (DFLP),the Palestine
Democratic Union (FIDA),and the National Struggle Front
(NSF). The remainder are independents. There are four women
in the cabinet. (Note: Two of the Fatah ministers were not
sworn in on May 19 as Hamas prevented them from leaving Gaza.
For their own safety, Fayyad is not publicizing their names
or situation. End Note.)


4. (C) Fighting within Abu Mazen's Fatah party prolonged the
process of appointing the government and led Fatah PLC
members publicly to reject the government (despite Fatah's
participation in it) shortly before it was sworn in. Two
Fatah PLC members (Issa Qaraqi and Rabiha Diab) turned down
cabinet posts at the last minute, forcing Fayyad to leave the
Women's Affairs and Prisoners portfolios vacant for the time
being. However, as the PLC is unable to convene a quorum,
the Fatah bloc's rejection of the government is largely
symbolic, though it serves to lessen the political boost that
both Fayyad and Abu Mazen hoped to get from the announcement.


5. (C) In a conversation with the Consul General on the
morning of May 20, PM Fayyad was upbeat, focusing on the way
forward and not on the problems of the past two months in
putting together the government. He noted the continuing
agitation against the government by some elements in Fatah,
including efforts to stir up Fatah controlled employee unions
against the government. Fayyad said he believes these
problems will dissipate after a few weeks as the government
begins to get out a positive message of providing services to
the people.


6. (U) Following the government's first cabinet meeting on
May 20, Fayyad said at a news conference that the
government's program is that of the Palestinian Liberation
Organization and it will be bound by the PLO's previous
commitments, implicitly accepting the Quartet requirements.
He said the government would serve until a national unity
government is formed, and he stressed that the government
will strive to meet the needs of the people of Gaza.

Hamas (Predictably) Reacts
--------------


7. (U) Hamas senior official Salah al Bardawil told the press
that Hamas considers Fayyad's government illegal, and said
Abu Mazen has "compounded this situation" by reappointing
him. Hamas PLC member Mushir Al Masri previously stated that
a new government under PM Fayyad would be "a death sentence"
for the reconciliation dialogue in Cairo.


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Cabinet Biographies
--------------


8. (SBU) Cabinet members sworn in to Salam Fayyad's second
government:

1) Prime Minister / Minister of Finance: Salam Fayyad -
Independent; incumbent

Fayyad, 55, has been Prime Minister since June 2007. He
enjoys broad international respect for his introduction of
core reforms of the PA's financial institutions when he
assumed the Finance Ministry for the first time in June 2002
under former President Arafat. Born in Der al-Ghsoun Village
in Tulkarem in 1952, Fayyad grew up in Nablus before he moved
to Jordan with his family. Fayyad earned a BS from the
American University in Beirut, an MA from Saint Andrews
University in Austin, Texas, and his PhD in Economics from
the University of Texas at Austin. He was appointed by
President Arafat as Finance Minister in June 2002; he
remained in that post until he resigned at the end of 2005 to
run in the PLC elections, winning a seat representing "The
Third Way" party. He was re-appointed Finance Minister in
March 2007 under the national unity government.

2) Interior: Dr. Said Abu Ali - Fatah; newly appointed

Previously the governor of Ramallah, Abu Ali is in his late
50s. He is well-respected by Fayyad and has worked closely
with the Consulate in recent years. He worked in the Fatah
offices in Tunis and was educated in France. He has a PhD in
a constitutional law. He teaches part-time at Birzeit and Al
Quds universities. He returned to Gaza and worked as the
head of the Fatah intellectual affairs department in Gaza
until early 2000. He then moved to the West Bank where he
served in the President's office and as Governor of Nablus
before being appointed as governor of Ramallah.

3) Foreign Affairs: Riad al-Malki - Independent; incumbent

Al-Malki was born in 1955 and earned a PhD in Civil
Engineering in the United States. In 1978, he worked in the
engineering department of Birzeit University and eventually
headed the department. In 1991 he founded the Panorama
Center. In 2000 he was awarded the European Peace Prize and
in 2005 the Italian Peace Prize. He is also the coordinator
of an alliance of over a dozen civil society institutions
called the Arab Program to Support and Develop Democracy.

4) Planning: Dr. Ali Jirbawi - Independent; newly appointed

Born in Jenin in 1954, Jirbawi holds a BA in Sociology from
Birzeit University, an MA in Political Science, an MA in
Public Administration, and a PhD in Political Science from
the University of Cincinnati. At Birzeit University, he has
served as professor of Political Science, assistant to the
President, assistant to the Dean of Art, Dean of Students
Affairs, and director of the Ibrahim Abu Lughud Institute of
International Studies. He has also served as co-chair of the
Central Elections Committee, which was set up in 2004 to
organize a nationwide registration effort to precede both
municipal and national elections.

5) National Economy: Bassim Khoury - Independent; newly
appointed

In his late 40s, Khoury was educated in the UK and is a well
known industrial pharmacist. He is the founder and General
Manager of PharmaCare, one of the West Bank's largest
pharmaceutical companies. In 2008-2009 he successfully
launched PharmaCare exports to Europe. He has a long and
productive relationship with the Consulate and USAID. He has
also been president of the Palestinian Federation of Industry
for nearly three years, having recently won re-election.
Khoury is Christian.

6) Justice: Dr. Ali Khashan - Fatah affiliated; incumbent

Born in Jerusalem in 1956, Khashan holds a PhD in
Constitutional Law from France. He worked as Head of the
Belgian-Palestinian Friends Society 1987-1991. He is one of
the founders of the first Law College at al-Quds University
and was Dean of the Law College 1992-2002. He is member of
board of trustees in several Palestinian academic
institutions, including Hebron University. Since 2002 he has
been Secretary of Committee to prepare the Palestinian
Constitution. He is representative of the Arab Center for Law
Development and Integrity in Palestine.

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7) Health: Fathi Abu Moghli - Fatah affiliated; incumbent

Abu Moghli was born in Nablus in 1950 and graduated from
Athens National University's medical school. He specialized
in internal medicine and practiced in several hospitals and
in the private sector. In 1998 he was appointed the Ministry
of Health's director of international projects and
coordinator of international financing. In 1999, he was
appointed director of the project to develop the Palestinian
health system funded by the World Bank and in 2000 he
supervised the setting up of the national health emergency
plan. He became the head of WHO's local offices in 2004. He
has been serving as Minister of Health in the Fayyad
government since 2007.

8) Public Works and Housing: Muhammad Shtayeh - Fatah; newly
appointed

Shtayeh, in his early 50s, is closely affiliated with Fatah,
but is not a senior member. He was born in the village of
Tel in Nablus Governorate. He holds a PhD in Economics, and
was a lecturer and dean of Birzeit University. Most
recently, he was the head of the Palestinian Economic Council
for Development and Reconstruction (PECDAR). He previously
served as Minister of Public Works in 2005-2006 under former
PM Ahmed Qurei.

9) Labor: Dr. Ahmad Majdalani - National Struggle Front;
newly appointed

Majdalani was born Damascus in 1956 and holds a PhD in
Political Economy from the Social Sciences Academy in Sofia.
Majdalani is a member of the Palestinian Popular Struggle
Front political bureau and of the PLO National and Central
Councils. He is a professor of philosophy and cultural
studies at Birzeit University. He is a former PA cabinet
minister, and in 2008 was assigned as PLO ambassador to
Romania.

10) Education: Ms. Lamis Alami - Independent; incumbent

Alami was born in Jerusalem in 1943. She received a BA in
English in 1964 and a Masters in English Literature in 1967
from Beirut University; she earned a Masters in Linguistics
from the University of Edinburgh in 1974. She worked as a
teacher of English Language at UNRWA Women Training College
in Ramallah until 1975. Between 1994-2004, Alami was in
charge of education for all UNRWA schools and colleges.

11) Waqf: Mahmud al-Habash - Independent; newly appointed
(formerly Minister of Social Affairs)

Al-Habash was born in 1963 in Gaza's Nuseirat Refugee Camp.
He holds a Masters in Islamic studies. He was arrested in
the first Intifada on charges of incitement and Hamas Gaza
membership; he was a former senior member of Hamas' political
leadership in Gaza until he split from the group in 1994 and
started political work as an independent. He teaches at al
Quds Open University. He served as Minister of Social
Affairs in the previous government.

12) Agriculture: Ismael Edaiq - Palestinian People's Party;
newly appointed

Edaiq was born in 1958 in the Jordan Valley village of
al-Awja and holds a masters degree from Russia and a PhD in
Agriculture Knowledge from Germany. He previously served as
director of the Agricultural Relief Committee.

13) Transport: Saadi al-Krunz - Fatah; newly appointed
(formerly Cabinet Secretary)

Born in Gaza's Al-Bureij Refugee Camp in 1958, Al-Krunz holds
a Ph.D. in Mathematics and Statistics (Purdue University),an
M.Sc. in Mathematics (University of Saskatchewan, Canada) and
a B.Sc. in Mathematics (Mansura University, Egypt). Al-Krunz
served as the first Minister of Industry in 1994. He also
served as the Minister of Transport in 2003. He was cabinet
secretary in the previous government.

14) Telecommunications: Mashhour Abu Daqqa - Independent;
newly appointed (formerly Minister of Transport)

Born in Jabalia, Gaza, in 1961, Abu Daqqa earned a PhD in
Mechanical Engineering in London and worked for several years
in scientific research institutes and universities in the UK.
He has also worked in the Mechanical Engineering Department

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of Birzeit University and as Director-General of scientific
research at the Ministry of Education. He served as Minister
of Transport in the previous government.

15) Tourism: Ms. Khuloud Deibes - Independent; incumbent

Deibes was born in Bethlehem in 1965. She holds a PhD in
Architecture from Hanover University in Germany. She was
Minister of Tourism in the national unity government in 2007.
In the previous government she served as both Minister of
Women's Affairs and Minister of Tourism. Deibes is Christian.

16) Local Government: Khaled Qawasmeh - Fatah affiliated;
newly appointed

Qawasmeh holds a PhD in Electrical Engineering from Ukraine.
He worked as an engineer in the Hebron Re-Construction
Committee and as a lecturer at al Quds University. He
previously served as Minister of Local Government from
February 2005 - March 2006. He is from a well-known Hebron
family and is the son of senior Fatah / PLO official who was
assassinated in Amman by a splinter Fatah group. He is
closely affiliated with Fatah although not an official member
of the group.

17) Social Affairs: Ms. Majida al-Masri - Democratic Front
for the Liberation of Palestine (DFLP); newly appointed

Al-Masri was born in Jaffa in 1947 and earned a BS in
Chemistry from the University of Cairo in 1970. Her family
moved to Nablus, but she was deported in 1978 due to her
political activities. She returned to the West Bank in 1996.
She is a member of the DFLP Central Committee.

18) Culture: Ms. Siham al-Barghouti - Palestine Democratic
Union (FIDA); newly appointed

Al-Barghouti was born in 1958 in Ramallah and earned a BA in
accounting from the University of Alexandria in 1970. She
served two years in an Israeli jail (1982-1984). She was a
prominent member of DFLP before splitting to join FIDA in the
early 1990s. However, due to her DFLP affiliation, she was
prevented from traveling for ten years by Israeli
authorities. She ran in the PLC elections in 2001
representing FIDA. Today, she is a member of the FIDA
political bureau and the head of the Association of Women's
Action for Training and Rehabilitation. She has also served
as director of the Rural Development Department in the
Ministry of Local Government.

19) Minister of State for Jerusalem Affairs: Hatem Abdel
Qader - Fatah; newly appointed

Abdel Qader, in his late 40s, was born and raised in
Jerusalem's Shu'fat refugee camp. He was educated in Egypt
and Jordan and has a BA in media studies. He was imprisoned
briefly for Intifada-related activities in the late 1980s.
Abdel Qader worked closely with the late Faisal Husseini.
Abdel Qader became a member of Fatah's High Committee in
1993, and is known to be a close confident of the Committee's
currently jailed leader, Marwan Barghouti. He has been a
Fatah PLC member representing Jerusalem since 2007. He
served as PM Fayyad's advisor for Jerusalem Affairs in the
previous government. The creation of a Ministerial-level
position is new.

20) Minister of State: Maher Ghneim - Fatah; newly appointed

Ghneim was born in Amman in 1960 and earned a B.S. in Civil
Engineering in Algeria. He returned to the West Bank in the
late 1990s. Since 2003, Ghneim has been under-secretary of
the PA Ministry of Public Works, where he has worked closely
with the Consulate and USAID on development issues. He is
the eldest son of Mohammad Ghneim, a senior FCC member based
in Amman and Tunisia.

21) Cabinet Secretary: Hassan Abu Libdeh - Fatah affiliated;
newly appointed

Abu Libdeh was born in 1954. He received a BSC in
Mathematics from Birzeit University in 1979, an MSC in
Statistics from Stanford University (CA) in 1981, and an MSC
and PhD in Applied Statistics from Cornell University (NY) in
1986 and 1988. In 1993 he founded and was president of the
Palestinian Central Bureau of Statistics. Abu Libdeh has
been serving as a senior advisor to PM Fayyad since 2007. In
2008 he organized the Palestine Investment Conference in
Bethlehem, which is recognized as a significant success for

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the previous government. He has since developed the
financial programs incorporated into the PA's Gaza Early
Recovery and Relief Plan that was presented in Sharm
el-Sheikh in March 2009.


9. (SBU) The following cabinet members will be publicly sworn
in as soon as they are able to depart Gaza:

-- Environment: Yousef Abu Safiyeh - Fatah affiliated

Born in Gaza on 1949, he received a BSC in Public Health in
1972 and an MSc from the American University in Beirut in

1977. He earned a PhD in Environmental Science from the
University of Texas in 1986. He was appointed PA Minister of
Environmental Affairs in August 1998 and was nominated
Chairman of the PLC Committee on Natural Resources in August

1998. He has participated in previous peace negotiations as
part of the Multilateral Working Group on Environment. Abu
Safiyeh is Chairman of the Palestinian Environmental Quality
Authority.

-- Youth and Sports: Jaber al-Daour - Fatah affiliated

Al-Daour was born in 1964 and has a PhD in Accounting from
the University of Manchester. He joined Fatah in 1982 and was
active in the Fatah Youth organization in Gaza. He worked as
director of al-Quds Open University in northern Gaza and also
taught at al-Zahar University. Al-Daour headed the
Palestinian Accounting Association representing Fatah.
WALLES