US embassy cable - 05TELAVIV1635

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001635 
 
SIPDIS 
 
E.O. 12958: DECL: 03/15/2015 
TAGS: OREP, IS, ECONOMY AND FINANCE, GAZA DISENGAGEMENT, ISRAELI-PALESTINIAN AFFAIRS 
SUBJECT: SENATOR CORZINE'S MARCH 14 MEETING WITH VICE PM 
OLMERT 
 
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b) and (d) 
 
1. (C)  Summary.  Senator Corzine and Ambassador Kurtzer met 
March 14 with Vice Prime Minister, and Minister of Industry, 
Trade and Labor Ehud Olmert.  The meeting focused on recent 
USG initiatives on intellectual property rights, Gaza 
disengagement, and the future of GOI interaction with the PA. 
 Olmert highlighted the positive progress in PA-GOI 
cooperation, and also hinted that fall 2005 would be an 
appropriate time to return to the final status discussions 
envisioned in the Road Map.  End Summary. 
 
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IPR 
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2. (C)  Minister Olmert opened the meeting with a discussion 
of his initiative to sign R&D agreements with sub-national 
governments in high-tech fields such as biotechnology or 
nanotechnology.  He noted that such deals have already been 
signed with Maryland, Victoria (Australia), and Ontario. 
Olmert pitched the idea of a biotech R & D fund between New 
Jersey and Israel.  Senator Corzine responded noting U.S. 
business' concern over the GOI proposals for data exclusivity 
as currently drafted.  Senator Corzine not only raised 
research-based PhRMA opposition to the bill, but inquired how 
the U.S. generic industry felt about the legislation.  In 
reviewing his key arguments, Minister Olmert emphasized that 
he has been willing to be flexible from the beginning. 
However, he also emphasized that, "what the PhRMA companies 
want is beyond the limits," and that Israel will not agree to 
a deal that goes beyond "what is done everywhere else." 
 
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Disengagement 
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3. (C)  On the subject of Gaza disengagement, Minister Olmert 
highlighted his impression that Prime Minister Sharon's 
disengagement plan is "de Gaullian in its historic 
proportions."  He described Sharon as the "ultimate authority 
on settlements" because he was so intrinsically identified 
with their development.  Olmert characterized disengagement 
as the first step to do "nothing less than attempt to 
redefine the borders of Israel to make it a demographically 
sustainable Jewish state."  He was sanguine about Sharon's 
possibilities for completing the process during his tenure as 
Prime Minister, adding that disengagement will be Sharon's 
legacy.  Briefly mentioning the budget, the passage of which 
has been cast in doubt by the rebel Likud members who oppose 
disengagement, Olmert commented that "I hope at the last 
minute we will manage, but I don't know---and I am the man 
who is supposed to know." 
 
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GOI-PA Cooperation 
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4. (C)  Minister Olmert heralded his March 13 decision to 
grant 6,000 Gazans work permits for Israel as his personal 
effort to "help a little bit."  He characterized the move as 
against his own policy, against the policy of the Prime 
Minister, and possibly damaging to the interests of 
unemployed Israeli workers, but said he was convinced of the 
necessity of the move in the short-term.  However, in the 
future Olmert maintains, "separation is separation" and "a 
free market for labor is different from a free market when 
the workers that you import might also be terrorists." 
Olmert emphasized that, "we (the GOI) have to help them (the 
PA) now, because with two or three more attacks like the one 
in Tel Aviv, we will no longer be able to help." 
 
5. (C)  Commenting on PA President Abbas, Olmert stated his 
opinion that "Abu Mazen wants to be better, and he is capable 
of taking the necessary steps," but he questioned Abbas' 
commitment to engage in a violent confrontation with militant 
groups that threaten to undermine the growing 
Israeli-Palestinian cooperation.  Responding to a question 
from Senator Corzine about the ability of external actors 
such as Hizballah to interfere with cooperation, Olmert 
contended that it was not only the headquarters of such 
groups in Beirut that were of concern for the GOI, but also 
established, local cells inside the West Bank that could 
cause problems. 
 
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Roadmap 
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6. (C)  Minister Olmert floated the idea that in September or 
October 2005 the GOI and the PA would be ready to start "real 
negotiations."  After disengagement in July the GOI will need 
"some time to recover" before a return to the roadmap would 
be possible.  He added that the PA elections in July should 
also provide a useful insight into how ready the PA is for 
real reform.  Omlert contended that even on the divisive 
issue of Jerusalem there was some opportunity for a 
negotiated solution, but not on the terms that the PA was 
currently promoting. 
 
7. (U)  Senator Corzine did not have an opportunity to clear 
this message. 
 
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