DEMARCHE: U.S. PLANS FOR MARCH 2 CONFERENCE,

UNCLAS SECTION 01 OF 03 STATE 014575 SIPDIS E.O. 12958: N/A TAGS: EFIN PGOV PTER PHUM KPAL KWBG SUBJECT: DEMARCHE: U.S. PLANS FOR MARCH 2 CONFERENCE, SHARM AL-SHEIKH ¶1. (U) This is an action request. Please see paragraph 3. ¶2. (U) The United States sees the March 2 conference in Sharm al-Sheikh as an opportunity for the international community to demonstrate unequivocal support for the Palestinian Authority (PA) and address the urgent humanitarian needs of the Palestinian people. The U.S. will be represented at a high level and intends to make a substantial pledge against priorities and activities identified by the PA and the February 2 United Nations' Consolidated Appeal (CAP),titled the "Gaza Flash Appeal." Long-term reconstruction of Gaza must be in line with PA priorities and only should be delivered in the context of a durable ceasefire that leads to a two state solution under a PA government with which the international community can work. This cable requests that posts engage host governments to share U.S. expectations for the March 2 conference. End summary. ¶3. (U) Action Request: Department requests that action addressees demarche relevant government officials to achieve the objectives listed below and report responses via front channel cable. Egypt has not yet released the list of invitees to the March 2 conference, which necessates that this cable be sent to a large number of posts. Embassies should use their discretion in responding to this demarche if they know that their host government is not participating or is not likely to be a substantial contributor. ¶4. (U) Objectives: -- Inform countries that the U.S. intends to use the March 2 conference in Sharm al-Sheikh to make a substantial pledge of humanitarian, economic development and early recovery assistance to both the PA and to UN and other humanitarian organizations. Secretary Clinton will lead the U.S. delegation, which also will include Special Envoy George Mitchell. -- Encourage countries to attend at the highest level possible and be prepared to make similar large pledges of assistance that empower the PA and address the humanitarian needs of Gaza, including through contributions to the UN CAP. -- Emphasize that the PA must be front-and-center. Donors should focus pledged support to meet the PA's priorities, including budget support, and on projects that can be funded through the PA and other existing trusted mechanisms - e.g. the UN CAP, World Bank Trust Fund (TF),PEGASE, the PA's single treasury account - without supporting Hamas. -- Reiterate that the international community should pursue a phased approach to assistance delivery that focuses initially on meeting immediate humanitarian needs, including the renovation of essential infrastructure. Broader reconstruction assistance should be in line with PA priorities and come in the context of a durable ceasefire. -- Stress that a successful conference empowers the PA, strengthens the position of Arab moderates and meets the STATE 00014575 002 OF 003 immediate humanitarian and early recovery needs of Gaza. -- Emphasize that the conference should be followed by a meeting of the Ad-Hoc Liaison Committee (AHLC) that would help identify the policies of donors, the PA and Israel that are required to ensure the maximum effectiveness of international assistance. Reporting Deadline - - - - - - - - - - ¶5. (U) Please report all host country responses to NEA/IPA Desk Officer Andrew Lentz by February 23. Background - - - - - - ¶6. (SBU) Secretary Clinton will use the conference to announce a substantial pledge that includes humanitarian assistance as well as support for the PA and the Palestinian Reform and Development Plan (PRDP). ¶7. (U) We anticipate that the PA will present a comprehensive statement of its needs in the context of its 2009 and 2010 operational and development budget. Prime Minister Salam Fayyad will use the March 2 conference to detail his early recovery and reconstruction plan for Gaza, including a $600 million project to provide grants and loans through commercial banks to Gazans whose houses were damaged during the fighting. Fayyad also is expected to seek direct budget support in order to pay public sector salaries in the West Bank and Gaza. Donors should be encouraged to fully support Fayyad's plan and the PA's financial needs. ¶8. (U) The UN CAP provides one of the best and most reliable vehicles for channeling donor assistance to Gaza without supporting Hamas and its institutions. UN Agencies such as the United Nations Relief and Works Agency for Palestinian Refugees in the Near East (UNRWA),the activities of which comprise over half of the CAP, UNICEF (the lead UN agency on water and sewage issues),and the World Food Program (WFP), have extensive distribution networks already in place in Gaza and are recognized by the PA and the Government of Israel (GOI) as the primary entities for the coordination and distribution of humanitarian assistance. UN agencies are providing essential health services, food, cash assistance to the neediest, materials for housing repair, and fuel to run generators, and report that they need consistent flows of donor assistance to meet immediate humanitarian needs. On February 2, the UN announced a new, aggregate appeal for relief and early recovery needs totaling $613 million. ¶9. (SBU) International humanitarian organizations have expressed concern that lack of access into Gaza for reconstruction materials, such as glass, cement, spare parts, and raw construction materials, will hinder early recovery efforts. The United States continues to engage with the GOI to find a mechanism that facilitates the entry of needed materials into Gaza, while addressing Israel's security concerns. ¶10. (U) The conference should focus on addressing the immediate humanitarian needs of the people of Gaza, empowering the PA, and cementing support for the leadership STATE 00014575 003 OF 003 of Egypt and other Arab moderate states. Broader reconstruction should be considered in the context of a PA with which the international community can work. Naturally, this would be a PA that rejects violence, recognizes Israel's right to exist, and engages with Israel on the basis of past agreements. These are not obstacles, but the necessary elements for a Palestinian state and for the unity of the West Bank and Gaza. Point of Contact - - - - - - - - ¶11. (U) The point of contact is NEA/IPA Desk Officer Andrew Lentz, ext. 7-2268, email lentzan@state.gov. CLINTON