STABILIZING GAZA

C O N F I D E N T I A L TEL AVIV 001167 SIPDIS E.O. 12958: DECL: 05/26/2016 TAGS: KPAL KWBG PREL EAID SUBJECT: STABILIZING GAZA REF: SECSTATE 52511 Classified By: Ambassador James B. Cunningham; reasons 1.5 b/d ¶1. (C) Ambassador met with Israeli MFA Director General Yossi Gal on May 27 to follow up on reftel, the main points of which we passed to MFA and the Prime Minister's Office on May 23 as a non-paper, given that GOI offices were closed for the weekend. Gal said he took as point of departure that the USG and the GOI agree on the need to strengthen the Palestinian Authority (PA) and weaken Hamas. He asked what was the source of USG concern, since there was no shortage of basic foods and medicines in Gaza at present and there was a mechanism in place between the Embassy/USAID and the Coordinator of Government Activities in the Territories (COGAT) to address any particular problems with shipments. The Ambassador stressed that our concerns were with broader, longer-term policy matters. He reminded Gal that there had been a policy-level discussion between the U.S. and Israel on how to improve and expand movement into Gaza, and on moving to a durable cease-fire in Gaza. We remain concerned by the humanitarian situation in the Strip, and this discussion had been interrupted by the change of Israeli government. The Ambassador said Washington wanted to make sure that the new Israeli government knows of U.S. views and our interest in resuming that dialogue. ¶2. (C) Gal asked if the Ambassador believed that the non-paper was based on the real situation on the ground in Gaza. The Ambassador pointed out that the international community, including the U.S., continue to have problems moving aid workers in and out of Gaza, there is not regular access for all foodstuffs and there is virtually no access for any construction materials, including glass for repairing minor damages to housing. He said he understood that GOI policy on Gaza is under review adn that what to do about Gilad Schalit is a key issue, But the USG also sees no evidence that the current border restrictions are helping to strengthen the Palestinian Authority and weaken Hamas. In fact, they seem to be having the opposite effect. ¶3. (C) Gal raised the issue of end-use assurances as a serious concern for Israel. The Ambassador explained that we have been working with other donors, including the UN agencies, to see how we might provide end-use assurances for items of real concern. However, he added, glass for repairing broken window panes or chickens to provide smallholders with additional protein do not need the assurances that materials for major infrastructure rebuilding or repair might. Gal also raised the reported 'diversion' of cash being transferred to the PA-run Gaza banking system. The Ambassador said these reports, along with reports of diversion of pipes intended for the World Bank's sewage treatment project at Beit Lahiya, appeared to be urban legends. He noted that we have repeatedly asked the GOI for proof of these allegations, and have received none to date. MFA Deputy DG for Economic Affairs Irit Ben Abba and Embassy EconCouns confirmed this fact, briefly outlining our respective efforts to get MOD and Shin Bet to corroborate the diversion claims. ¶4. (C) Ben Abba then made a pitch for the GOI's proposed end-use assurances mechanism, which she said Israel hoped would receive USG support when it was presented at the June 8 Ad Hoc Liaison Committee meeting in Oslo. Ambassador Cunningham noted that in our conversations with other donors, all had said that assurances at the level provided by USAID would be impossible, financially and politically. Since the Israeli proposal is USAID assurances plus additional requirements, the GOI mechanism simply would not work and he thought that message had been conveyed to the GOI. EconCouns asked if the GOI had discussed the proposed mechanism with the PA yet, to which Ben Abba replied that she hoped to have that discussion before the AHLC. (Comment: We subsequently noted to Ben Abba that presenting the GOI mechanism to the AHLC without prior PA buy-in would risk politicizing a meeting that we were all trying to limit to a practical, technical discussion.) ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv ********************************************* ******************** CUNNINGHAM