US embassy cable - 04TELAVIV6407

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 006407 
 
SIPDIS 
 
E.O. 12958: DECL: 12/16/2014 
TAGS: KWBG, PGOV, PREL, IS, GOI INTERNAL, ISRAELI-PALESTINIAN AFFAIRS, GAZA DISENGAGEMENT 
SUBJECT: PERES TELLS CODEL BLUNT IMPORTANT FOR U.S. TO 
SUPPORT PALESTINIANS NOW 
 
Classified By: Ambassador Daniel Kurtzer for reasons 1.4 (b,d). 
 
1.  (C) Summary: In a December 13 meeting, Labor Party leader 
Shimon Peres told Codel Blunt that he hoped Likud and Labor 
would form a new coalition to avoid early elections and the 
consequent postponement of implementation of Gaza 
disengagement.  Peres noted that with Yasser Arafat's death 
and the upcoming Palestinian elections, an important 
opportunity exists to advance the peace process.  He stressed 
the importance of international and, in particular, USG 
assistance to the Palestinians, including economic aid.  End 
summary. 
 
2.  (U) Codel Blunt consisted of Representatives Roy Blunt, 
Steny Hoyer, Mark Kirk, Tom Cole and Ben Cardin, who were 
accompanied by staffers Brian Gaston, Brian Diffell, and 
Geoff Plague, as well as military escorts Colonel Randy 
O'Boyle and Captain Eugene Barlow.  Ambassador Kurtzer and 
poloff notetaker attended the meeting. 
 
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Coalition: So Close 
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3.  (C) Labor Party leader Shimon Peres told Codel Blunt 
December 13 that he "hopes" Likud and Labor find a way to 
form a unity government to avoid early elections.  Peres 
noted that holding early elections would be "a tragedy" since 
this would delay implementation of the disengagement plan by 
months.  Peres stressed that "2005 should be devoted to 
policies, not politics."  Without Labor in the coalition, 
Peres said, Sharon would not have a majority to support 
disengagement. 
 
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Peres on the PA Leadership, Obstacles to Peace 
--------------------------------------------- - 
 
4.  (C) Peres stressed that Yasser Arafat's death presented a 
"rare" opportunity, and that a positive Palestinian 
leadership could emerge.  He noted that this leadership would 
face the challenge of working as a team and establishing 
credibility with the Palestinian people.  He said that, to 
further the peace process, three obstacles would need to be 
overcome: the status of Jerusalem, the Palestinian refugees' 
right of return to Israel, and borders.  Peres advocated 
postponing negotiations on the status of Jerusalem, as the 
"current climate" is not conducive to resolving the issue. 
Peres also said that the Palestinian leadership is not 
"ready" to give up the right of return.  He advocated the 
establishment of a viable Palestinian state before attempting 
to resolve this issue.  Peres opined that the issue of 
borders is something that could be resolved, but he added 
that Palestinian leaders such as Abu Mazen and Abu Ala'a 
would need to take tough positions to prove themselves to the 
Palestinian public.  Peres said that Sharon has lost his 
reason for unilateralism with the death of Arafat. 
 
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Palestinians Need Help 
---------------------- 
 
5.  (C) Israel will be leaving the Palestinians "in a 
terrible economic situation" once it withdraws from Gaza, 
Peres said.  Peres advocated that a reconstruction campaign 
be mounted in Gaza and suggested that the USG ask Saudi 
Arabia to provide greater assistance to the Palestinians.  He 
opined that the Saudis could use their oil revenues to cover 
the cost of such assistance.  Peres underlined that the 
Palestinians need to see advantages of disengagement, 
including an improved economy.  He suggested that the U.S. 
and the EU consider including the Palestinians within free 
trade zones.  Gaza needs assistance addressing its water 
needs and with modernizing its agriculture, Peres added. 
"They are on the verge of starvation," Peres stressed.  "We 
cannot allow poverty to replace occupation," he said. 
 
6.  (C) Peres advocated Israeli withdrawal from all 
Palestinian cities in preparation for Palestinian elections. 
Peres stressed that the new leadership will need to ensure a 
transparent financial system and a unified security force 
after the elections.  In response to the Codel's query, Peres 
opined that PA chief negotiator Saeb Erekat -- with whom the 
Codel would meet later that day -- is "reasonable, 
democratic, and means well" but that "he is not a top 
leader."  Peres referred to Marwan Barghouti, who was 
convicted in Israel of terrorist acts, as "a pain in the 
neck" and not in the same class as Abu Mazen.  He expressed 
relief that Barghouti decided to support Abu Mazen in the 
upcoming elections instead of running himself.  Peres 
stressed that USG support for the Palestinian elections and 
its new leadership is "very important."  Peres noted that Abu 
Ala'a and Abu Mazen were currently traveling in the Arab 
world to raise support for the PA. 
 
7.  (U) Codel Blunt did not clear this message. 
 
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