NORWEGIANS HAPPY WITH SHARM EL-SHEIK INROADS,

C O N F I D E N T I A L SECTION 01 OF 02 OSLO 000179

SIPDIS

FOR NEA/IPA ANDREW LENTZ

E.O. 12958: DECL: 03/19/2019
TAGS: EFIN EUN KPAL KWBG PGOV PHUM PTER NO
SUBJECT: NORWEGIANS HAPPY WITH SHARM EL-SHEIK INROADS,
JAPANESE MIFFED AT EXCLUSION FROM APRIL AHLC MEETING

REF: STATE 20388

Classified By: Political Counselor Kristen Bauer for reasons 1.4(b) and
(d)


1. (C) Summary: The GON found the conference in Sharm
el-Sheik both constructive and surprisingly positive in tone,
and hopes it will help bring Arab and Gulf donors deeper into
the AHLC framework. Norway continues to emphasize the
structural importance of the Palestinian Authority (PA) in
Gaza, and views the division between the West Bank and Gaza
with alarm. Japanese embassy officials in Oslo are
distressed that, after donating $200 million at Sharm
el-Sheik, they will not be invited to the April AHLC working
group conference. End Summary.


2. (C) Poloff met for two hours with Senior Advisor Signe
Gilen of the MFA Mid-East section, to discuss the GON's views
of the current situation in Palestine and the results of the
March 2 Sharm el-Sheik conference, where Norway pledged 10%
over ad above its previous Paris pledges. The GON positon,
as articulated by Gilen, follows:


--PA'sImportance Underestimated in Gaza:
There seemed o e a widely held misunderstanding at Sharm
el-Seik that the PA cannot work in Gaza. In fact, thePA is
paying 77,000 people in Gaza, and the UN ad other
organizations depend on the services the provide: for
example, the water and power infrastructures. Few outside
organizations have staff in Gaza, and, because of the
financial importance to Gaza of PA employees, the social
fabric of Gaza is upheld by the PA. Therefore, the
continuing transfer of PA money into Gaza is crucial. The
allowance of 150M shekels by the Israelis was a good step,
but more is needed.


--Norway's Aim: Arab Money to the PA:
Hamas was barely mentioned at the Sharm el-Sheik conference,
but Norway views the key challenge as getting donors' money
directly to the PA, especially the new donations from Arab
and Gulf states. Some Arab states without on-the-ground
presences in Gaza are in a difficult political situation,
given their unwillingness to favor either the PA or Hamas.
Norway believes that "it is unrealistic to try to go around
the PA," and is focusing on the World Bank trust fund as a
solution. Norway agreed to co-chair the Sharm el-Sheik
conference precisely in order to help tie the new donations
precipitated by the Gaza war into the AHLC system. A key
issue for follow up is whether the Islamic Development Fund,
which usually self-implements its programs, will be willing
to contribute directly to the PA.


--The April AHLC Meeting:
The agenda of the planned April AHLC meeting is to discuss
(a) access to Gaza (b) the modalities of funding pledged in
Sharm el-Sheik (c) securing the PA budget, all in preparation
of a planned ministerial-level meeting that the Norwegians
would like to call for the AHLC in May. The GON wants to
limit participation in the April meeting, partially because
of the sensitivity of expected interactions with Arab states.


--Geography vs. Politics:
The GON believes that if the situation in Gaza deteriorates,
the West Bank may become unmanageable, and the economic and
political schism between the two areas is "extremely
dangerous." Norway is helping the PA deliver services in
East Jerusalem to maintain public faith in the PA where the
PA lacks control over its own territory. Norway views the
border-closing, smuggling, and interdiction issues as so
closely related that it's hard to discuss one without the
others. The Israeli closure regime not only threatens Gaza's
material well being and, indirectly, the political viability
of the PA, but increasingly also the patience of donors.


Japanese Frustrated
--------------


3. (C) Mr. Yuki Yoshida, political officer at the Japanese
Embassy, contacted poloff shortly after poloff's meeting with
Gilen to discuss the AHLC as well. Gilen had told poloff not
to discuss the April 1 meeting with Yoshida, but Yoshida

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later called Gilen directly, who had told Yoshida exactly
what she told poloff--that attendance might be limited in
order to facilitate discussion of modalities of funds
transfer by Arab states to the PA. Yoshida said that Tokyo
was frustrated and somewhat baffled that after pledging $200
million at Sharm el-Sheik that they would be excluded from
any AHLC discussions.
WHITNEY