Identifier
Created
Classification
Origin
09STATE29399
2009-03-26 20:50:00
UNCLASSIFIED
Secretary of State
Cable title:
BUDGET SUPPORT FOR THE PALESTINIAN AUTHORITY:
how-toVZCZCXYZ0018 RR RUEHWEB DE RUEHC #9399 0852107 ZNR UUUUU ZZH R 262050Z MAR 09 FM SECSTATE WASHDC TO RUEHAD/AMEMBASSY ABU DHABI 3635 RUEHDO/AMEMBASSY DOHA 0629 RUEHKU/AMEMBASSY KUWAIT 5764 RUEHMK/AMEMBASSY MANAMA 5995 RUEHRH/AMEMBASSY RIYADH 1261 INFO RUEHEG/AMEMBASSY CAIRO 0586 RUEHMS/AMEMBASSY MUSCAT 0312 RUEHTV/AMEMBASSY TEL AVIV 7703 RUEHJM/AMCONSUL JERUSALEM 4646
UNCLAS STATE 029399
SIPDIS
E.O. 12958: N/A
TAGS: EFIN KPAL KWBG PGOV PHUM PTER
SUBJECT: BUDGET SUPPORT FOR THE PALESTINIAN AUTHORITY:
REQUEST FOR CONTINUED ENGAGEMENT
REF: A. STATE 23135
B. STATE 20388
C. JERUSALEM 549
UNCLAS STATE 029399
SIPDIS
E.O. 12958: N/A
TAGS: EFIN KPAL KWBG PGOV PHUM PTER
SUBJECT: BUDGET SUPPORT FOR THE PALESTINIAN AUTHORITY:
REQUEST FOR CONTINUED ENGAGEMENT
REF: A. STATE 23135
B. STATE 20388
C. JERUSALEM 549
1. Department appreciates the reporting that posts have
provided in response to Refs A and B. Strengthening the
Palestinian Authority (PA) as a credible negotiating partner
with Israel is central to this Administration's foreign
policy objective of advancing a two-state solution to the
Israeli-Palestinian conflict. Direct budget assistance to
the PA also helps to support Abu Mazen and his government as
the legitimate representative of all Palestinians.
2. The PA's budget situation remains grim, however,
threatening the PA's political and financial foundation. The
PA needs $95 million per month to meet recurrent expenses,
yet external, donor financing in 2009 consistently has fallen
short of the PA's need. As a result, the PA has begun to
accumulate overdrafts and private sector arrears and will be
unable to pay March salaries without an immediate influx of
$50-60 million (ref C).
3. As instructed in ref A, posts are requested to convey this
information to host governments and continue to engage in a
sustained dialogue with the objective of maximizing cash
support for the PA budget, consistent with its needs. Posts
should also draw on information in the fact sheet in ref A to
address concerns as raised.
4. Department looks forward to early responses and updates on
this subject.
CLINTON
SIPDIS
E.O. 12958: N/A
TAGS: EFIN KPAL KWBG PGOV PHUM PTER
SUBJECT: BUDGET SUPPORT FOR THE PALESTINIAN AUTHORITY:
REQUEST FOR CONTINUED ENGAGEMENT
REF: A. STATE 23135
B. STATE 20388
C. JERUSALEM 549
1. Department appreciates the reporting that posts have
provided in response to Refs A and B. Strengthening the
Palestinian Authority (PA) as a credible negotiating partner
with Israel is central to this Administration's foreign
policy objective of advancing a two-state solution to the
Israeli-Palestinian conflict. Direct budget assistance to
the PA also helps to support Abu Mazen and his government as
the legitimate representative of all Palestinians.
2. The PA's budget situation remains grim, however,
threatening the PA's political and financial foundation. The
PA needs $95 million per month to meet recurrent expenses,
yet external, donor financing in 2009 consistently has fallen
short of the PA's need. As a result, the PA has begun to
accumulate overdrafts and private sector arrears and will be
unable to pay March salaries without an immediate influx of
$50-60 million (ref C).
3. As instructed in ref A, posts are requested to convey this
information to host governments and continue to engage in a
sustained dialogue with the objective of maximizing cash
support for the PA budget, consistent with its needs. Posts
should also draw on information in the fact sheet in ref A to
address concerns as raised.
4. Department looks forward to early responses and updates on
this subject.
CLINTON