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