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 OSLO 00000179 002 OF 002 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