US embassy cable - 04TELAVIV2164

C O N F I D E N T I A L TEL AVIV 002164 
 
SIPDIS 
 
NEA FOR SATTERFIELD 
 
E.O. 12958: DECL: 04/12/2006 
TAGS: KWBG, ECON, GZ, IS, PTER, ISRAELI-PALESTINIAN AFFAIRS, GAZA DISENGAGEMENT 
SUBJECT: OVER 200 GAZA BUSINESSMEN LAMENT DELAYS AT KARNI 
CROSSING AND URGE "ACTIVISTS" NOT TO TARGET COMMERCIAL 
FACILITIES 
 
 
Classified By: Economic Counselor Ted Mann per 1.4 b and d 
 
1.  (C) Embassy sources reported that over 200 Gazan 
businessmen attended a Chambers of Commerce meeting on April 
13 in Gaza City.  They attributed the large turnout to the 
seriousness of the problems facing businessmen caused by 
delays at Karni crossing.  (Karni is the only commercial 
crossing serving the Gaza Strip).  Although Karni is 
technically open, businessmen report that processing has been 
at a snail's pace for more than two weeks.  According to one 
source, trucks are waiting at the crossing for over seven 
days to make a delivery as opposed to the customary 24-48 
hours.  These delays have caused transportation costs to 
increase seven fold from an average of USD 230 per truckload 
to USD 1590.  Mohammed Yazeji, Seven-Up distributor, reported 
that his inability to receive inputs for over ten days has 
forced him to send 80 laborers "on vacation."  Yazeji 
reported that many Gazan businessmen were facing similar 
circumstances. 
 
2.  (C)  Yazeji reported that businessmen were running out of 
ideas.  He said businessmen had already written to PA 
Minister of National Economy Maher el Masri; appealed to Gaza 
security head Mohammed Dahlan; and sent emissaries to "all 
the groups" asking them not to "make actions" near commercial 
crossings/interests -- all to no avail.  According to Yazeji, 
at the April 13 Chambers of Commerce meeting, businessmen 
decided to use the press to appeal to the GOI to restore full 
operations at Karni crossing and to tell the international 
community that Karni should be closed altogether if the GOI 
planned to only allow it to continue operating in drips and 
drabs.  Yazeji acknowledged that a complete closure would not 
help the cause, but said the private sector was grasping for 
ways to sensitize the international community to its plight. 
 
3.  (C)  Comment:  Time and time again, the Palestinian 
private sector has borne the brunt of terrorist acts and the 
resulting Israeli security crackdown and closure.  The GOI 
all but froze activity at Karni after terrorists stowed away 
in an empty container transiting the crossing and carried out 
the March 14 bombing at Ashdod port which killed ten 
Israelis.  The relief/donor community reacted quickly to this 
closure, issued international press releases, mobilized the 
UN and saw access for its humanitarian goods restored 
relatively quickly.  Normal operations were not/not, however, 
restored for the private sector. With no lobbying ability 
comparable to that of the international relief community and 
an apparent inability to dissuade militants from targeting 
commercial facilities/infrastructure, the private sector is 
truly caught in the middle.  A significant infrastructure 
upgrade that would improve security and still allow for the 
expeditious processing of goods is perhaps the most practical 
solution in the near term.  While such an upgrade has been 
discussed, no decisions have been taken by Israel, the 
Palestinians, or the donor community on what such an upgrade 
would entail and how it would be financed. 
 
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