Identifier
Created
Classification
Origin
09JERUSALEM848
2009-05-22 14:42:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
PALESTINIAN BUSINESS COMMUNITY PLEASED BY NEW
how-toVZCZCXRO1163 OO RUEHROV DE RUEHJM #0848/01 1421442 ZNY CCCCC ZZH O 221442Z MAY 09 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC IMMEDIATE 4912 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RUEKJCS/JCS WASHDC PRIORITY RUEKJCS/JOINT STAFF WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000848
SIPDIS
NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR SHAPIRO/KUMAR;
TREASURY FOR AHERN
DEPT PLEASE PASS TO USAID FOR ANE/MEA: MCCLOUD/BORODIN
JOINT STAFF FOR LTGEN SELVA
E.O. 12958: DECL: 05/21/2019
TAGS: ECON EFIN PGOV KWBG IS PREL
SUBJECT: PALESTINIAN BUSINESS COMMUNITY PLEASED BY NEW
GOVERNMENT; CONCERNED ABOUT STABILITY
REF: JERUSALEM 825
Classified By: Acting Principal Officer Greg Marchese for reasons 1.4 (
b) and (d)
C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000848
SIPDIS
NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR SHAPIRO/KUMAR;
TREASURY FOR AHERN
DEPT PLEASE PASS TO USAID FOR ANE/MEA: MCCLOUD/BORODIN
JOINT STAFF FOR LTGEN SELVA
E.O. 12958: DECL: 05/21/2019
TAGS: ECON EFIN PGOV KWBG IS PREL
SUBJECT: PALESTINIAN BUSINESS COMMUNITY PLEASED BY NEW
GOVERNMENT; CONCERNED ABOUT STABILITY
REF: JERUSALEM 825
Classified By: Acting Principal Officer Greg Marchese for reasons 1.4 (
b) and (d)
1. (SBU) Summary: Contacts in the Palestinian business
community are generally pleased with the new Palestinian
Authority government, but concerned that the timing and
method of government formation has deepened political
differences. Contacts emphasized the need for the new
government to support the private sector and improve the
situation on the ground, including paying the next round of
civil service salaries on time in the first week of June.
End summary.
High hopes, low expectations, deep divisions
--------------
2. (C) Palestinian business contacts stressed that they need
a government that will support the private sector and work to
improve the situation on the ground. The new Minister of
National Economy, Bassim Khoury, is seen as a definite
improvement over his predecessor, who had been forced to
manage three Ministries and was widely disparaged among the
business community. However, Kareem Shehadeh, head of the
Palestinian-American Chamber of Commerce, said Khoury needs
strong support from the business community to spur economic
development in the West Bank, and from the international
community to ease restrictions on access and movement.
3. (C) Nameer Khayyat, Head of the Nablus Chamber of
Commerce, noted that several members of the new Cabinet have
long-standing business and social relations, which could help
them work together. Ismail al-Jebrini, owner of a dairy
company in Hebron that supplies the PA Security Forces, said
the PA owes him around USD 175,000, and hopes the new
government will succeed in raising money to pay its bills.
4. (C) Hebron businessman Amer Osaily said many Hebronites
are discouraged by divisions within the Palestinian
leadership. Although some new Ministers are capable and
respected individuals, he said there is a growing bitterness
that "Ramallah" and "Gaza" are unable to come together, and
that the split within Fatah has grown deeper. Samir Hazboun,
Chairman of Bethlehem Chamber of Commerce and a Fayyad
supporter, noted ironically that, for the first time, members
of Fatah and Hamas agree on something -- the refusal to
accept this government.
Union reaction
--------------
5. (C) The Chairman of the PA Public Union, Bassam Zakarneh,
told EconSpecialist that, despite Fatah PLC calls for a
boycott, the Union will continue to work with the new
government for the benefit of PA employees. Zakarneh, who
has battled with Fayyad repeatedly over the past two years
over civil service pay issues, said that Fayyad has strong
international support, but claimed he lacks political support
at home.
Gaza reaction
--------------
6. (C) Gazan businessman Abu Hashim al-Khozendar said that
the average Gazan does not see the new government as
significantly different from the previous one. However, the
timing of the government formation is viewed as deepening the
split between the West Bank and Gaza. Other contacts in Gaza
echoed the sentiment that Abbas should have let the
reconciliation talks fail or succeed before installing a new
government.
Time to deliver
--------------
7. (C) Many business sector contacts who have been
consistently supportive of Fayyad lament that he has been
unable to translate his security and economic accomplishments
into greater public support. They noted that, over time,
they have gone from working to support Fayyad's efforts to
having to defend them. There is a strong sense that the
ability to pay salaries on time in the West Bank and Gaza in
JERUSALEM 00000848 002 OF 002
early June will be an important test for the new government.
MARCHESE
SIPDIS
NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR SHAPIRO/KUMAR;
TREASURY FOR AHERN
DEPT PLEASE PASS TO USAID FOR ANE/MEA: MCCLOUD/BORODIN
JOINT STAFF FOR LTGEN SELVA
E.O. 12958: DECL: 05/21/2019
TAGS: ECON EFIN PGOV KWBG IS PREL
SUBJECT: PALESTINIAN BUSINESS COMMUNITY PLEASED BY NEW
GOVERNMENT; CONCERNED ABOUT STABILITY
REF: JERUSALEM 825
Classified By: Acting Principal Officer Greg Marchese for reasons 1.4 (
b) and (d)
1. (SBU) Summary: Contacts in the Palestinian business
community are generally pleased with the new Palestinian
Authority government, but concerned that the timing and
method of government formation has deepened political
differences. Contacts emphasized the need for the new
government to support the private sector and improve the
situation on the ground, including paying the next round of
civil service salaries on time in the first week of June.
End summary.
High hopes, low expectations, deep divisions
--------------
2. (C) Palestinian business contacts stressed that they need
a government that will support the private sector and work to
improve the situation on the ground. The new Minister of
National Economy, Bassim Khoury, is seen as a definite
improvement over his predecessor, who had been forced to
manage three Ministries and was widely disparaged among the
business community. However, Kareem Shehadeh, head of the
Palestinian-American Chamber of Commerce, said Khoury needs
strong support from the business community to spur economic
development in the West Bank, and from the international
community to ease restrictions on access and movement.
3. (C) Nameer Khayyat, Head of the Nablus Chamber of
Commerce, noted that several members of the new Cabinet have
long-standing business and social relations, which could help
them work together. Ismail al-Jebrini, owner of a dairy
company in Hebron that supplies the PA Security Forces, said
the PA owes him around USD 175,000, and hopes the new
government will succeed in raising money to pay its bills.
4. (C) Hebron businessman Amer Osaily said many Hebronites
are discouraged by divisions within the Palestinian
leadership. Although some new Ministers are capable and
respected individuals, he said there is a growing bitterness
that "Ramallah" and "Gaza" are unable to come together, and
that the split within Fatah has grown deeper. Samir Hazboun,
Chairman of Bethlehem Chamber of Commerce and a Fayyad
supporter, noted ironically that, for the first time, members
of Fatah and Hamas agree on something -- the refusal to
accept this government.
Union reaction
--------------
5. (C) The Chairman of the PA Public Union, Bassam Zakarneh,
told EconSpecialist that, despite Fatah PLC calls for a
boycott, the Union will continue to work with the new
government for the benefit of PA employees. Zakarneh, who
has battled with Fayyad repeatedly over the past two years
over civil service pay issues, said that Fayyad has strong
international support, but claimed he lacks political support
at home.
Gaza reaction
--------------
6. (C) Gazan businessman Abu Hashim al-Khozendar said that
the average Gazan does not see the new government as
significantly different from the previous one. However, the
timing of the government formation is viewed as deepening the
split between the West Bank and Gaza. Other contacts in Gaza
echoed the sentiment that Abbas should have let the
reconciliation talks fail or succeed before installing a new
government.
Time to deliver
--------------
7. (C) Many business sector contacts who have been
consistently supportive of Fayyad lament that he has been
unable to translate his security and economic accomplishments
into greater public support. They noted that, over time,
they have gone from working to support Fayyad's efforts to
having to defend them. There is a strong sense that the
ability to pay salaries on time in the West Bank and Gaza in
JERUSALEM 00000848 002 OF 002
early June will be an important test for the new government.
MARCHESE