US embassy cable - 04TELAVIV6650

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 006650 
 
SIPDIS 
 
E.O. 12958: DECL: 12/30/2014 
TAGS: PREL, IS, KPAL, ISRAELI-PALESTINIAN AFFAIRS, PEACE PROCESS, GAZA DISENGAGEMENT 
SUBJECT: SHARON: OPPORTUNITY FOR PEACE PROGRESS EXISTS, BUT 
PALESTINIANS MUST CONFRONT TERRORISM 
 
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4(b) and (d). 
 
1. (C) Prime Minister Sharon told Sen. Lieberman December 27 
that he is confident of forming a new coalition government 
soon.  He said the Left in Israel cannot implement 
disengagement and has never removed an Israeli settlement; 
and the Right is against disengagement and removal of 
settlements.  Sharon emphasized he will proceed to implement 
disengagement without any change in the substance or 
timetable of the plan. 
 
2. (C) While noting an opportunity for progress towards peace 
exists, Sharon pointed to continuation of Palestinian 
terrorism and the continued failure of Palestinian security 
forces to deploy to stop the violence.  The successful 
conclusion of disengagement could pave the way back to the 
road map, Sharon said, but this will not happen if terrorism 
continues.  "Israel will not negotiate under fire." 
 
3. (C) Sharon complained about recent statements by Abu Mazen 
that sounded much like Arafat.  Sen. Lieberman said that Abu 
Mazen had told him earlier in the day that he is new to 
politics.  Abu Mazen was focused on the need to end violence 
and specifically mentioned that rockets and mortars must 
stop.  Sharon commented that Israel does not expect Abu Mazen 
to be a Zionist, but steps need to be taken against 
terrorism. Israel is providing significant support to the 
Palestinians on elections. 
 
4. (C) Asked about the situation following the elections, 
Sharon expressed the hope that Abu Mazen will be elected and 
expected to meet him soon.  Sharon said he would raise with 
Abu Mazen the need to deal with security, an issue on which 
Israel would make no compromises.  Second, Sharon would 
propose coordination between the Israeli and Palestinian 
security services regarding disengagement and would be 
prepared to coordinate other disengagement issues as well. 
Third, Sharon noted the importance of Palestinians' receiving 
financial support, particularly for infrastructure projects 
such as desalination, power stations, and housing for 
refugees so as to eliminate refugee camps.  Finally, Sharon 
noted, if Israel can be free of its responsibility for 
Gaza--that is, if conditions permit Israel's withdrawal from 
the Philadelphi strip--then planning could begin for 
transportation networks between Egypt and Gaza and for a 
seaport and an airport. 
 
5. (C) Sharon expressed particular concern about ongoing 
weapons smuggling to Gaza.  Palestinians have brought in 
rocket-propelled grenades and several shoulder-fired 
surface-to-air missiles (Strellas, not Stingers).  He said 
that Egypt is "doing something" but not enough in order to 
stop the smuggling.  It is important that a secure climate be 
built in Gaza to attract foreign investment. 
 
6. (C) Sharon said he knows that Abu Mazen wants to arrange a 
ceasefire and that if there is quiet, Israel will reciprocate 
with quiet.  But a ceasefire alone is not enough. There must 
be a full cessation of terrorism, violence and incitement. 
Israel will not sit quietly if it comes under fire and will 
not accept the excuse that Abu Mazen needs time to get 
organized. 
 
7. (C) Sen. Lieberman said that Abu Mazen listed his 
priorities with Israel as stopping the security wall, ending 
settlement activity, and seeking the gradual release of 
prisoners.  In contrast, Saeb Erekat had told Lieberman that 
the priorities must be the creation of Palestinian jobs, an 
end of back-to-back cargo handling and the like.  In 
response, Sharon emphasized again the importance of 
dismantling terrorist organizations according to the roadmap 
and in line with the plans developed by Tenet and Zinni. 
Commenting on Abu Mazen's priorities, Sharon listed his own 
priorities as follows: 
 
--Palestinian refugees will not return to the State of Israel. 
--In accordance with the agreement reached with President 
Bush, heavily populated, major settlement blocs will be 
"connected" to Israel. 
--Israel will never negotiate over Jerusalem, its eternal 
capital, and there will be no negotiation leading to the 
division of Jerusalem.  Sharon said he could consider handing 
over some Arab neighborhoods populated after the 1967 war, 
but stressed he would never hand over the Temple Mount, Mount 
of Olives or the City of David. 
--Israel will continue to build the fence, which has already 
reduced Israeli casualties.  In accordance with Israeli High 
Court decisions, Israel has also adopted policies to reduce 
Palestinian suffering. 
--Israel is not building new settlements.  The Jewish 
population in the West Bank (outside Jerusalem) is 250,000, 
and there are towns, schools and industry.  Parts of the 
settlement blocs will stay in Israel's hands according to the 
agreement reached with President Bush. 
 
8. (U) Senator Lieberman did not clear this message before 
his departure. 
 
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KURTZER