AMBASSADOR PRESSES GAZA/WEST BANK ISSUES WITH AMOS

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001656

SIPDIS

NSC FOR NENA/SHAPIRO AND KUMAR

E.O. 12958: DECL: 07/23/2019
TAGS: EAID PREL KWBG IS
SUBJECT: AMBASSADOR PRESSES GAZA/WEST BANK ISSUES WITH AMOS
GILAD

Classified By: Ambassador James B. Cunningham; reasons 1.4 b/d.


1. (SBU) Ambassador met with Ministry of Defense PolMil
Bureau Director Amos Gilad on July 23 to get an update on
Gilad's meetings with senior Egyptian officials (septel),to
underscore USG support for phase one of the UN Gaza
reconstruction plan, to urge continued expansion of the flow
of commodities and small business seed-projects into Gaza, to
press for shipment of UN/NGO Security euipment into Gaza, and
to push for rapid release of spectra for the Wataniya mobile
network project.


2. (SBU) On the Serry reconstruction plan, the Ambassador
reiterated the USG view that phase one was a good, workable
idea. He said it was essential for Israel, the Palestinian
Authority and the United States to be able to show that
positive things were beginning to happen on the ground in
Gaza, under the aegis of the PA. Noting Barak Chief-of-Staff
Mike Herzog's comment that the UN should start with a single
pilot project, the Ambassador once again explained to Gilad
that the entire first phase of the Serry plan was the pilot
for Gaza reconstruction. He added that there was no practical
or political reason to break the first phase into smaller
pieces, since it already contained several sub-phases, with
some projects ready to resume within weeks, while others
would have to be re-tendered and could take two or more
months to get up and running. Stressing Washington's
interest in moving phase one forward, the Ambassador also
pointed out that starting with a range of different types of
project would give the GOI more information on what would or
would not work from its perspective than would a single
project.


3. (C) Gilad noted that the GOI had already broadened the
list of permissible construction projects and materials
imports into Gaza to include all sewage and water projects.
He said the USAID proposals for smallholder poultry farms,
vegetable gardens and greenhouses should not pose any
problems, since similar projects involving honey bees and cut
flower exports to the Netherlands were moving forward
quietly. Gilad added that the GOI would like to keep these
projects low-profile to avoid domestic political pressure
over Israeli hostage Gilad Shalit. On security of the
crossings in general, Gilad cautioned that Israeli intel had
picked up a plot by a group "worse than Hamas" that was aimed
at destroying the Erez crossing, using a huge quantity of
explosives. This and other security indicators had led the
GOI to set up fuel and grain import mechanisms at the Kerem
Shalom crossing, eventually closing the less secure Karni and
Nahal Oz crossings. On the Serry plan, Gilad said he would
be meeting with Serry on July 27, but would have no new
messages for him (Note: We have communicated this to Serry's
staff. End Note). The Ambassador said the USG understands
the Shalit angle and the need to keep things low key.
However, we see the current situation in Gaza as inherently
unstable and not in either GOI nor USG interest. He again
stressed the need to move forward on the Serry plan, one
month after MOD Barak had discussed it with UNSYG Ban Ki Moon
and it had been presented to the Quartet.


4. (C) Turning to MOD Barak's commitment to release radio
spectra needed for the second Palestinian mobile telephone
network (the Wataniya Project),the Ambassador asked when the
frequencies would be turned over to the PA. Gilad said he
understood the importance of the Wataniya project, noting the
money it would bring into the PA coffers and the 3,000 jobs
it would create. In fact, said Gilad, this was just the kind
of project we should all be supporting, rather than the big
industrial zones that brought no immediate economic or
political benefit to Salam Fayyad. But he had been unable to
secure the agreement of the various Israeli agencies
involved. He had made that point to MOD Barak, and the
Minister had recently "ordered" all the involved IDF elements
to resolve their differences over release of the frequencies
and release them without any further discussion. Gilad said
it would be a matter of weeks, now that Barak had intervened
personally in the matter. (Comment: Gilad then interjected
that he had told Fayyad if the Palestinian complaint to the
International Criminal Court were not withdrawn, Israeli
cooperation with the PA would "deteriorate." It was not
clear whether he intended to link the two issues or whether
the Wataniya discussion had prompted him to recount his most
recent conversation with PM Fayyad. End Comment.)


5. (SBU) The Ambassador asked about our long-standing request
to release vehicles, light weapons and bullet-proof glass to
support UN and NGO security in Gaza. He stressed the
importance of rapid approval of the items requested,

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particularly in light of the recent Hamas threats against
UNWRA personnel. Gilad said he supported the request but had
found it hard to convince others in the GOI security
establishment. He confirmed that two of the three UNWRA
vehicles, intended to replace those damaged by Israeli
artillery during Operation Cast Lead, had been exported to
Gaza, and the third will go in as soon as the damaged vehicle
it is replacing has come out. Meanwhile, 10 new vehicles,
including six for UNWRA have yet to be approved. (Comment:
Gilad's staff tell us that IDF Chief of Staff Gabi Ashkenazi
has held up all of these items (including the vehicles) for
at least three months now because of objections by Southern
Command Commander Galant. Gilad had told us earlier that he
shares U.S. concerns, and is trying to overcome IDF
objections bit-by-bit. End Comment).


6. (SBU) The Ambassador asked about press reports that MOD
has drafted a plan to evacuate all of the illegal outposts in
the West Bank at once. Gilad said that the media reports were
incorrect and may have been motivated by efforts to stir up
the settler extremists. However, he confirmed that the IDF
and Border Police have been ordered to come up with plans to
evacuate the outposts identified by the GOI as illegal and
that training exercises were underway to prepare for such
operations.

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CUNNINGHAM