PALESTINE EMBASSY NOT CONCERNED ABOUT SEPARATING

C O N F I D E N T I A L RIYADH 000362 E.O. 12958: DECL: 02/25/2019 TAGS: PREL EAID KWBG SA GCC SUBJECT: PALESTINE EMBASSY NOT CONCERNED ABOUT SEPARATING RECONSTRUCTION FROM PA SUPPORT REF: JHARRIS EMAILS 2/23-24/09 Classified By: POL Counselor Lisa Carle, 1.4(b),(d) ¶1. KEY POINTS -- (C) Palestine Embassy in Riyadh Counselor Karaki (protect) told Post February 25 that his embassy does not see the GCC decision to separate Gaza reconstruction from Palestinian Authority (PA) financing as evidence of diminished Saudi or GCC support for the PA. -- (C) Karaki's reasons were: 1) the GCC cannot function in Gaza without coordinating with the PA, and GCC members including Qatar have said they won't deal directly with Hamas; 2) even if reconstruction funds went directly to the PA, it couldn't do much in Gaza without a Palestinian unity agreement and a truce with Israel; and 3) the PA has an overriding interest in starting reconstruction as soon as possible. -- (C) Karaki stressed that PM Fayyad is engaged in direct talks with the Saudis and other GCC members on the question of support to the PA, though he admitted he did not know whether these contacts had resulted in contributions of funds. -- (C) GCC finance ministers will meet February 28 to begin discussing implementation of the Gaza reconstruction fund. Karaki said the GCC intends to open a "field office" in Gaza to facilitate administration of the program. This office will also deal with entry permits for building materials and other reconstruction supplies. ¶2. COMMENT -- (C) Karaki could have been unwilling to say anything negative about Saudi/PA relations, or just out of the loop, but on the other hand, the contrast between his views and what PM Fayyad said in Washington (Ref emails) could mean the Palestinians are playing up concerns about GCC intentions for our benefit. -- (C) If the GCC decision was not intended to undermine the PA, then we should consider explaining to the Saudis that it has certainly created such an impression, which we would look to them to dispel through a gesture of support. -- (C) Karaki said the GCC has made clear it wants a stable, responsible Palestinian unity government, which Karaki clearly interpreted to mean a PA-led government. FRAKER