C O N F I D E N T I A L UNVIE VIENNA 000123

SIPDIS

DEPARTMENT FOR ISN/MNSA, VCI/NA, L/ACV, IO/UNP, IO/T
GENEVA FOR CD DEL
DOE FOR NN-40
JCS FOR J5/DDIN
SECDEF FOR OSD/ISP, ATSD/NCB/NT AND DTRA

E.O. 12958: DECL: 03/25/2019
TAGS: AORC KTBT PARM CTBT KPAL IS
SUBJECT: ISRAEL CONSIDERING PALESTINE OBSERVERSHIP AT THE
CTBTO

Classified By: Ambassador Gregory Schulte, Reason 1.5 (B and D)


1. (C) Summary: Following up discussions with incoming
Comprehensive Test Ban Treaty (CTBT) Prepcom Chair Australia,
Israeli Ambassador Michaeli met March 19 with DCM to review
the long-standing issue of Palestinian observership and to
float the idea of "package deal" in which Israel might
acquiesce to Palestinian Authority (PA) observership at
CTBTO in exchange for progress on Israel's position within
the MESA group (the MESA group has never met, due to Iran's
refusal to sit together with Israel) and the activation of
CTBT monitoring stations in the Middle East. Michaeli
speculated that Prepcom Chair Australia was pushing the
suggestion of a "package deal" in the hope this might help to
save the Prepcom from getting bogged down on the observer
issue, even if any resolution is still years away.
Emphasizing that he was speaking without instructions at a
time of government flux in Jerusalem, Michaeli suggested that
a US demarche on Israel might be helpful to ensure that the
Australian idea gets a serious hearing inside the GOI. End
Summary.


2. (C) Israeli Ambassador to the CTBTO and IAEA Israel
Michaeli asked to see DCM on March 19 to review dynamics with
the Arab group in both organizations. On the latter,
Michaeli was concerned about the improbability of another
successful parliamentary maneuver to deal with Egyptian moves
against Israel at the IAEA General Conference, and welcomed
the prospect of early bilateral engagement on our strategy
(see sep email to ISN/RA). Regarding CTBTO, Michaeli wanted
to share with us his recent conversations with incoming CTBTO
Prepcom Chairman Peter Shannon of Australia. Michaeli
reported that Shannon had called on him looking for Israeli
flexibility on the long outstanding question of Palestinian
observership, which Israel and the US have opposed in the
past. Michaeli noted that in addition to the Palestinian
question, Israel has two other areas of concern. The first
is the continued failure of the MESA group to meet, due to
Iran's refusal to sit together with Israel. The second is
the gap in International Monitoring System (IMS) coverage in
the Middle East (and on into South Asia). Egypt has never
started work on its IMS station. Iran has completed some
stations but does not report data. Saudi Arabia is dragging
its feet. Pakistan and India do not participate.
Responding to these issues, Michaeli said, Ambassador Shannon
raised the possibility of a "package deal" in which Israel
might look the other way on PA observership, in exchange for
movement on MESA and Middle East IMS stations (with MESA
being much more important for Israel). These intertwined
issues will never be solved by the Prepcom in June, Michaeli
added, but "perhaps we could create a process."


3. (C) Emphasizing that he had absolutely no mandate from
Jerusalem to pursue this issue, Michaeli confided that "I
believe I can convince people to discuss a package
seriously." To make that more likely, he added, it would be
helpful for Washington to convey in Jerusalem the view that
the question of Palestine at the CTBTO merits attention and
might be worth addressing in the context of trying to manage
other Arab-Israeli issues in Vienna. Michaeli told AC Couns
on March 24 that he now had the go ahead from his MFA to move
on this proposal, without making any formal commitments. He
agreed that it was very difficult to believe Iran would
accept the proposal, since they really do not want a
resolution of the issue. However, we (and Australia) see
merit in this package deal as a means of putting the onus on

others for the lack of resolution on Middle East issues
inside CTBTO.


4. (C) Comment and Action Request: The issue of Palestinian
observership at the CTBTO is a side show in Vienna that has
little practical importance for the work we do here. It
does, however, help to poison an already difficult
Arab-Israeli dynamic across the Vienna international
organizations. As we look to rebuild a climate of consensus
on difficult issues like Iran and the IAEA budget, the
Australian idea of a package deal on Palestinian observership
may be worth a second look in Washington and Jerusalem.
Ambassador Michaeli (strictly protect) clearly would welcome
some US encouragement in this direction and UNVIE recommends
consideration of a demarche by Embassy Tel Aviv to encourage
creativity in addressing these Vienna issues. End Comment.

SCHULTE