HAMAS FACING SEVERE FUNDING SHORTAGES

S E C R E T TEL AVIV 002446 C O R R E C T E D C O P Y (CAVEAT & TAGS) NOFORN SIPDIS TREASURY FOR DAN MOGER AND BEN SCHMIDT, STATE FOR NEA/IPA E.O. 12958: DECL: 11/06/2019 TAGS: PTER EFIN KTFN IS SUBJECT: HAMAS FACING SEVERE FUNDING SHORTAGES Classified By: Economic Counselor David R. Burnett for reasons 1.4 b/d ¶1. (S/NF) Hamas has been facing severe funding shortages over the last several months--primarily due to the GOI policy of restricting cash in-flows from Hamas headquarters in Damascus and fund-raisers, according to Israeli Security Agency (ISA, also commonly known as Shin Bet) officials. ISA officials told Econoff that Hamas has resorted to paying only half of the standard monthly salary to its activists. Even so, the movement has been taking loans from local Gazan businessowners to make these salary payments since its funds from abroad have been reduced. ¶2. (S/NF) ISA officials also noted to LEGAT that the shortage was particularly acute during the distribution of salaries in September around Ramadan. Hamas had intended to initiate salary payments before the Eid al Fitr holiday in order to enable holiday purchases. Instead, it was forced to split the payments into two portions; half of the amount was paid before the holiday, and the remainder was paid at the originally scheduled date of the beginning of October. Additionally, Hamas has been unable to fully implement its plan to employ the jobless (the "Takaful" plan). Out of the prior goal of providing jobs to 2000 of the movement's unemployed, only half have received paid work. ¶3. (S/NF) ISA officials claimed that these shortages are indicative of the success of GOI's efforts (in coordination with the U.S. and the international community) to thwart terror financing. They stressed the importance of continuing bilateral cooperation and coordination on the designation of terrorist groups and reiterated that the U.S. designation of the Lebanese Wakfiya and Al-Quds remains their top priority. Furthermore, ISA hopes to coordinate with the USG on garnering international support (especially from the EU) for designating the Union of Good. The GOI believes that an EU designation would further augment the strength of the U.S. designation in weakening Hamas. CUNNINGHAM