Identifier
Created
Classification
Origin
09STATE69240
2009-07-03 00:40:00
CONFIDENTIAL
Secretary of State
Cable title:  

THE SECRETARY'S MEETING WITH PALESTINIAN AUTHORITY

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DE RUEHC #9240 1840103
ZNY CCCCC ZZH
P 030040Z JUL 09
FM SECSTATE WASHDC
TO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0000
RUEHAS/AMEMBASSY ALGIERS PRIORITY 0000
RUEHEG/AMEMBASSY CAIRO PRIORITY 0000
RUEHDO/AMEMBASSY DOHA PRIORITY 0000
RUEHKU/AMEMBASSY KUWAIT PRIORITY 0000
RUEHRH/AMEMBASSY RIYADH PRIORITY 0000
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0000
RUEHJM/AMCONSUL JERUSALEM PRIORITY 0000
C O N F I D E N T I A L STATE 069240 

SIPDIS

E.O. 12958: DECL: 07/02/2019
TAGS: OVIP CLINTON HILLARY RODHAM EAID KPAL PGOV PREL
WBG, IS
SUBJECT: THE SECRETARY'S MEETING WITH PALESTINIAN AUTHORITY
PRIME MINISTER SALAM FAYYAD, JULY 1, 2009

Classified By: NEA Jeffrey Feltman, Acting, reasons 1.4 (b)
and (d).

C O N F I D E N T I A L STATE 069240

SIPDIS

E.O. 12958: DECL: 07/02/2019
TAGS: OVIP CLINTON HILLARY RODHAM EAID KPAL PGOV PREL
WBG, IS
SUBJECT: THE SECRETARY'S MEETING WITH PALESTINIAN AUTHORITY
PRIME MINISTER SALAM FAYYAD, JULY 1, 2009

Classified By: NEA Jeffrey Feltman, Acting, reasons 1.4 (b)
and (d).


1. (U) July 1, 2009; 4:30 p.m.; Washington DC


2. (U) Participants:

U.S.
--------------

The Secretary
William Burns, Under Secretary for Political Affairs
David Hale, Deputy Assistant Secretary, NEA

Palestinian Authority
--------------

Prime Minister Salam Fayyad
Manal Zeidan, Director, International Relations


3. (C) Summary: The Secretary, joined by Under Secretary
Burns and NEA Deputy Assistant Secretary Hale, met with
Palestinian Authority (PA) Prime Minister Salam Fayyad in
Washington on July 1. The Secretary expressed strong
support for the PA and the Prime Minister's leadership,
informing Fayyad that the USG intends to transfer $200
million in direct budget support to the PA before the end
of July. Fayyad told the Secretary that while there have
been improvements in conditions on the ground in the West
Bank, Israel needs to do more on access and movement and
stop incursions into Area A in order to encourage real
economic and institutional development. Fayyad committed
to staying engaged in the U.S. legal system in
terrorism-related civil cases against the PA/PLO, and
asked for USG help in vacating defaults to allow the PA a
chance to defend itself. Finally, Fayyad expressed
concern that Egyptian-led reconciliation talks could
result in an outcome that would make it impossible for his
government to function. End summary.

Some Improvements on the Ground
--------------


4. (C) The Secretary reiterated USG support for the PA
government and expressed her appreciation for Fayyad's
efforts to reform and build PA institutions. Fayyad told
the Secretary that the PA's successful efforts to maintain
security in the West Bank were restoring a sense of
capability and self-confidence among the Palestinian
people. He acknowledged that a reduction in Israeli
Defense Force (IDF) incursions into Area A, including
Israel's recent moratorium on IDF operations in Bethlehem,

Qalqiliya, Ramallah and Jericho, have helped, but said
stopping Area A incursions altogether is what is really
needed to bolster the image and capability of the PA
security forces. Fayyad added that economic activity
and a sense of hope in the West Bank have picked up slightly,
but Israel must expand and deepen improvements to access
and movement to allow economic activity to be significantly
and positively affected.

Continued Need for Donor Support
--------------


5. (C) Fayyad emphasized that the PA's lack of resources
remains a serious problem. He said that he is
disappointed with the Arab states for not coming forward
so far in 2009 with substantial levels of budgetary or
other assistance for the PA. Hale briefed Fayyad on the
USG's continuing efforts to increase Arab support for the
PA government. All agreed that Saudi Arabia is the key,
and that other Arab states would continue to hide behind
them until the Saudis moved. The Secretary explained to
Fayyad that the U.S. hoped to complete the transfer of
$200 million in cash assistance under the FY2009
Supplemental to the PA before the end of July. Fayyad was
grateful for the USG's package of assistance, which he
understood was on the way. Overall, he felt that the U.S.
had imposed a higher standard of accountability on donors
to deliver pledged assistance, which he felt was new and
making a positive difference.

Addressing Terrorism-Related Civil Cases
--------------


6. (C) Regarding the terrorism-related civil cases against
the PA/PLO, the Secretary stressed that the Department is
determined to find a way forward -- a solution that would
meet the legitimate claims of U.S. victims while
protecting the PA from debilitating damage awards. Fayyad
observed that the Israeli system gives the Israeli
government broad discretion to block court action when
Israeli foreign policy or security interests are at
stake. He thought, therefore, more effort could be made
to try to get judgments vacated and to influence Israeli
proceedings. Overall, in describing his legal strategy
going forward, Fayyad said that he wanted to play by the
rules and acknowledged that Arafat's legal strategy, which
now forced the PA to deal with hundreds of millions of
dollars in default judgments, had been a disaster. Fayyad
recognized that U.S. victims were due something, but noted
that the amounts of the default judgments were outrageous.

Concern over Palestinian Reconciliation
--------------


7. (C) Fayyad was very concerned about the reconciliation
talks in Cairo, saying that he had understood that an
agreement was in hand, only to be surprised by the news
that the process had fallen apart and talks postponed
until July 25. He concluded that this must have been the
result of U.S. intervention. Hale noted that while the
USG had made clear to Abu Mazen and the Egyptians its
concerns and redlines, we understood that the parties
themselves could not bridge substantive differences - a
point that Fayyad acknowledged. Fayyad continued that he
did not believe the Fatah negotiators could be relied
upon. They are more interested in seizing back the PA
government, he said, so would happily reach a
reconciliation agreement that was unacceptable to Fayyad,
which would force Fayyad either to refuse the terms of the
agreement and resign, or accept and be unable to
function. Fayyad said that the factional committee idea
being pushed by the Egyptians, for instance, would render
his government's work impossible.
CLINTON