ISRAELI-SAUDI TRACK TWO DISCUSSION

C O N F I D E N T I A L TEL AVIV 000098 SIPDIS E.O. 12958: DECL: 01/15/2020 TAGS: PREL SA IR KWBG IS SUBJECT: ISRAELI-SAUDI TRACK TWO DISCUSSION Classified By: Acting DCM Marc Sievers, Reason 1.4 (b) (d) ¶1. (C) Economic Cooperation Foundation (ECF) Director General Yair Hirschfeld briefed A/DCM and EconCouns January 14 on the latest session of a track-two working group on Middle East peace that includes participants from Saudi Arabia, Jordan, Lebanon, and the Palestinian Authority, as well as Hirschfeld and at least one other non-official Israeli. This group met at least three times in the second half of 2009, and is considered particularly interesting by Hirschfeld and other Israelis because of the participation of retired Saudi Major General Anwar Al-Eshki, who heads a Jeddah-based think tank. Hirschfeld said that Al-Eshki informed him that his participation and the ideas he presented were not officially endorsed by the Saudi government, but Saudi officials were aware of his actions and he does report all of his interactions with Israelis to his government. The Egyptian member of this group declined to attend this session, possibly out of concern over Al-Eshki's proposal regarding Gaza reported below. ¶2. (C) Hirschfeld said that in this session, Al-Eshki elaborated on some ideas he had raised previously about stabilizing Gaza and turning Hamas into a strictly political movement. According to Hirschfeld, Al-Eshki made the following points, which Hirschfeld has briefed to senior GOI officials: Israeli acceptance of the Arab Peace Initiative is the key to a greater Saudi role in the peace process. The Saudis understand that it may take time for the Netanyahu government to accept the API, but at a minimum they want to see positive indications from Israel in this regard. Al-Eshki said the Saudis realize Israeli-Palestinian peace will take time, perhaps more than two years, but they want to see movement in the right direction. ¶3. (C) The immediate need is to neutralize Iran's role in Palestinian politics. If the Saudis receive the appropriate signals from Israel about the API, Al-Eshki advocates a leading Saudi role in stabilizing Gaza. This would involve a multi-faceted approach, including Arab and PA (and presumably Israeli) recognition of Hamas control of Gaza. Saudi Arabia would mobilize economic assistance for Gaza, including direct investment as well as development of infrastructure. Hamas in return would agree to disarm, with pan-Arab political backing and an international force to supervise the removal of Hamas stockpiles of weapons, including all rockets and missiles. The PA would amend its constitution to explcitly recognize a separate status for Gaza pending the completion of the process of political reconciliation. As a result of disarmament and recognition, Hamas would no longer oppose negotiations leading to two states. ¶4. (C) Comment: We welcome Embassy Riyadh's comment on El-Eshki's presentation. Hirschfeld remains a tireless proponent of Arab-Israeli peacemaking but he has limited experience in dealing with Saudi interlocutors. CUNNINGHAM