US embassy cable - 05TELAVIV1420

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001420 
 
SIPDIS 
 
E.O. 12958: DECL: 03/10/2015 
TAGS: ECON, KWBG, KPAL, PREL, IS, GAZA DISENGAGEMENT, ISRAELI-PALESTINIAN AFFAIRS 
SUBJECT: MFA OFFICIAL ON GOI-PA DISENGAGEMENT COORDINATION 
DIFFICULTIES 
 
 
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b) and (d) 
 
1.  (C) Summary: MFA Deputy Director General for Economic 
Affairs Yossi Gal told Ambassador Kurtzer that the PA should 
promptly seize the opportunity to coordinate with Israel on 
the economic and civil aspects of the disengagement plan via 
joint GOI-PA working groups on trade, settlement assets, 
border crossings, and economic development.  Opining that 
"the cow wants to give more milk than the calf is ready to 
suckle," Gal said there is no credible point of contact on 
disengagement issues within the PA.  The Ambassador noted 
that the USG will encourage the PA to put together working 
groups more quickly than the three-to-four weeks Mohammed 
Dahlan has requested, but also urged the Israelis to give the 
PA time to get organized.  He further suggested the GOI spark 
PA responsiveness by providing Dahlan with a list of Israel's 
current plans and inviting dialogue.  The group also 
discussed follow-up to the London meeting, with Gal 
emphasizing the GOI's continued concern over the World Bank's 
indicators exercise.  Finally, Gal asked about the donor 
timetable and the upcoming AHLC, to which the Ambassador 
noted that the USG is currently focused on "creating facts" 
via USAID programs and General Ward's discussions with the 
PA, rather than on organizational structure.  End Summary. 
 
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PA Slow to Engage, GOI Can Encourage Responsiveness 
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2.  (C) Yossi Gal, head of the MFA's economic bureau, told 
Ambassador Kurtzer March 7 that he does not see the PA 
"getting its act together" on disengagement issues.  The GOI 
is prepared with working-level groups on trade, settlement 
assets, border crossings, and economic development, Gal said, 
and a Minister-level steering committee will meet regularly 
on these issues.    In Gal's view, however, "the cow wants to 
give more milk than the calf is ready to suckle" -- PA 
Minister of Civil Affairs Mohammed Dalhan has requested a 
full three-to-four weeks before his staff will be ready to 
talk to Israel.  Gal expressed frustration that there is no 
truly empowered point of contact on disengagement issues 
within the PA. 
 
3.  (C) The Ambassador reminded Gal that until recently, all 
aspects of Israel's disengagement plan were unilateral, and 
it is therefore difficult to expect immediate PA readiness. 
"The PA is building something from scratch," he noted.  While 
the USG will encourage Dahlan and others to shorten 
preparation time before talks with Israel, the Ambassador 
suggested the GOI can encourage greater PA responsiveness by 
providing it with a detailed list of Israel's current plans 
for the economic and civil aspects of the withdrawal.  Such a 
list would invite PA reaction and would enable Dahlan and the 
working-level groups to come to the table ready to engage on 
specifics. 
 
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World Bank Indicators Still Unpopular 
------------------------------------- 
 
4.  (C) Gal raised Israel's continued concern with the World 
Bank's indicators exercise, underlining the inequity of 
benchmarks as applied to the PA and to Israel.  The PA, Gal 
said, will be given vague and "poetic" directives such as 
"demonstrating effort to improve security," while Israel will 
be judged on specifics like the number of checkpoints and 
barriers removed.  On top of this, he lamented, perceived GOI 
failure would only lead to donors "punishing" the PA by 
withholding funds.  The Ambassador said the GOI would be 
advised to contribute to the indicators exercise, instead of 
opposing it in principle.  In this way, the GOI could help 
shape the final product. 
 
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U.S. Ready to Act, Less Concerned 
With Donor Organizational Structures 
------------------------------------ 
 
5.  (C) Gal asked the Ambassador about the donors' timetable, 
and said he understood the USG wanted an early AHLC meeting. 
The Ambassador responded that USG focus is now on moving 
forward by creating facts and encouraging action.  In this 
vein, he said, USAID's PAPA program had the positive effect 
of sparking PA reaction on the key issue of 
post-disengagement agribusiness cooperation.  Further, the 
USG is "ready to go" on a number of programs to be funded 
under the USD 350 million supplemental currently moving 
through Congress.  General Ward will take a similar posture, 
moving quickly to work with the PA security apparatus.  The 
Ambassador told Gal that the U.S. can step into a stronger 
third party role on disengagement if the GOI indicates this 
is what it wants. 
 
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KURTZER