AMBASSADOR RICE'S MEETING WITH UN

C O N F I D E N T I A L USUN NEW YORK 000054

SIPDIS

E.O. 12958: DECL: 01/27/2014
TAGS: EAID PGOV PREF PREL KWBG IS
SUBJECT: AMBASSADOR RICE'S MEETING WITH UN
UNDER-SECRETARY-GENERAL HOLMES

Classified By: Ambassador Susan E. Rice for reasons 1.4(b) and (d).


1. (C) The UN's Under-Secretary-General for Humanitarian
Affairs, John Holmes, just back from a brief visit to Gaza,
told Ambassador Rice Jan. 26 it will take a lot of time and
money to repair the war's damage, but lamented there is no
political basis on which to build and said he fears donors
will be reluctant to invest. The war's impact on the
possibility of peace is profound, he said. The prospect of a
two-state solution could be lost. A radical move is needed.
Stopping the settlements is fundamental. The West must
improve relations with Iran and Syria. This might encourage
reconciliation between Hamas and the Palestinian Authority.
Hamas is not going away. The UN's more immediate task, he
said, is to address Gaza's humanitarian needs, and the Office
for the Coordination of Humanitarian Affairs (OCHA) will
launch an appeal Feb. 2 in Geneva for up to USD 800 million
for a 6-9 month program. He urged the United States to press
Saudi Arabia and other Gulf States to contribute to the
appeal. End summary.


2. (C) Holmes, accompanied by his deputy, Catherine Bragg,
met for an hour with Ambassador Rice. He described Gaza as
grim, but said Gazans are resilient. Food is the most urgent
need. Medical supplies and doctors, on the other hand, are
plentiful, though some hospitals need repair. Cash is
urgently needed, but Israel is reluctant to let it in, afraid
it will end up in the hands of Hamas. Power, water, and
sewage systems are damaged and dilapidated, power stations
need fuel, and unexploded ordnance needs to be removed.


3. (C) We don't want to deal politically with Hamas, said
Holmes, and we won't give them money, but we have to operate
through them and the PA accepts this. By dealing with
low-level officials we can stay away from politics. He said
he is afraid Hamas may feel the need to reassert itself and
this may make the humanitarian relief effort more difficult.
Ambassador Rice asked if it is realistic to work through the
PA. Holmes said it is not. This cannot be used to get the
PA back into Gaza, he said. All we can do is make sure we
don't weaken the PA, nothing more.


4. (C) Ambassador Rice asked about Iranian funding to Hamas.
Holmes said it's hard to know, but pointed out that Hamas
says it will distribute money to Gazans and it's a fair bet
it comes from Iran. She asked about the European response to
the war's destruction. He said the Europeans would probably
be reluctant to invest in reconstruction, but immediate
humanitarian relief would be no problem for them.


5. (C) The crossings into Gaza are a crucial matter, said
Holmes. Israel's Social Affairs Minister has the lead on
this. The UN has told the Ministry the crossings need to be
fully open. There's no going back to having to negotiate
everything with COGAT. He called this a recipe for further
despair. If dual-use goods like cement can't get in (none
has gotten in for the last 18 months),we'll get nowhere,
said Holmes. The United States needs to put pressure on
Israel to open the crossings and especially to allow in
building materials.


6. (C) Gaza needs to restore some self-generating economic
activity, said Holmes. If not, there is no prospect for
peace. There used to be farms, market gardens, and
industries, but most of them are gone. Now everybody wants a
job with the government. There is no going back to what he
called the policy of strangulation.


7. (C) Ambassador Rice asked about other areas of concern,
such as Congo. Holmes said he would travel there in a couple
of weeks. The scenario could become more optimistic with
Nkunda out of the picture. The humanitarian needs are huge,
he said. Ambassador Rice asked about Somalia. Holmes said
that with the Ethiopians gone, the situation is
unpredictable. Paradoxically, he noted, their departure and
the resulting lack of central control could make it easier to
deliver humanitarian assistance.


8. (C) On the brighter side, said Holmes, the situation is
improving in East Timor, also in West Africa. Catherine
Bragg said the UN was doing a better job of responding to
natural disasters. Holmes concluded by saying the response
to the UN's humanitarian appeals has been good.
Rice