DEMARCHE REQUEST: IMMEDIATE BUDGET SUPPORT FOR THE

C O N F I D E N T I A L RIYADH 000220 SIPDIS DEPARTMENT PASS NEA/IPA FOR ANDREW LENTZ, NEA/ARP FOR JOSH HARRIS. E.O. 12958: DECL: 02/02/2019 TAGS: KPAL KWBG EFIN PGOV PTER PHUM SUBJECT: DEMARCHE REQUEST: IMMEDIATE BUDGET SUPPORT FOR THE PALESTINIAN AUTHORITY REF: SECSTATE 8722 Classified By: Political Counselor Lisa Carle Reasons 1.4 (b) & (d). ¶1. (U) This is an action request. See para 2. ¶2. (C) Ambassador delivered reftel demarche to Saudi MFA Undersecretary for Multilateral Affairs Dr. Prince Turki bin Muhammad bin Saud Al Kabeer. The Prince noted that FM Saud Al-Faisal was in Cairo for consultations with the Egyptian government on ways to strengthen the Palestinian Authority. Indicating he understood the need for urgent assistance to help the PA meet its operating expenses, Dr. Prince Turki asked for details on the specific mechanisms used by the USG to transfer funds to the PA. The Ambassador promised to convey this request and provide details as soon as possible. Please advise. ¶3. (C) The Ambassador asked for details on USD 1 billion pledged by King Abdallah for Gaza reconstruction. Prince Turki explained that the SAG was still studying the matter, and had yet to decide how to disburse the funds. Some of the money would likely go to international organizations such as UNRWA and ICRC, but they were also considering whether to channel funds to private companies who could undertake construction projects, for example. The SAG was determined that none of the money should fall into the hands of Hamas. Nor would they allow the money to go into "individual pockets," Turki added. FRAKER