US embassy cable - 05TELAVIV2761

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 002761 
 
SIPDIS 
 
E.O. 12958: DECL: 05/03/2010 
TAGS: IS, KPAL, OREP, PREL, XF, SETTLEMENTS 
SUBJECT: SHARON TO CODELS: WE NEED TO BUILD IN THE 
SETTLEMENT BLOCS AND PLEASE LEAVE US ALONE 
 
 
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b) and (d) 
 
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Terrorism and Palestinian Authority Performance 
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1.  (C)  During a May 2 meeting with Senator Bill Frist and 
Senator Joseph Lieberman, Prime Minister Sharon described in 
familiar terms his concerns about the failure of the 
Palestinian Authority to dismantle terrorist infrastructure. 
Sharon said that he personally remains committed to all that 
he has promised, including implementation of the 
disengagement plan, and that if Palestinians implement their 
commitments on dismantling terrorism, it will be possible to 
move back to the roadmap.  He said he had been ready for 
painful compromises for peace, but could not make any 
compromises in the face of Palestinian terrorism. 
 
2.  (C)  Sharon said that Palestinian terror groups continue 
preparing for acts of terrorism.  He noted that Israel had 
captured a suicide bomber a few days before.  Although the 
volume of terrorism has declined, the reality is that 
Palestinian President Abbas committed a major mistake by 
promising not to take steps against terrorist groups if they 
abided by the "tahadiya" or period of calm that precedes a 
ceasefire.  Sharon said the PA continues to make declarations 
but fails to act.  Smuggling continues, military industries 
are working, and Palestinian terror groups are training.  The 
Palestinians are taking advantage of the fact that Israel is 
not taking pro-active steps against them. Sharon asserted 
that nothing will happen if terrorism does not stop and if 
terrorist organizations are not dismantled. 
 
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Disengagement Coordination 
-------------------------- 
 
3.  (C)  Sharon said he remains ready to coordinate 
disengagement with the Palestinian Authority and, in fact, 
some contacts have begun following U.S. pressure on the 
Palestinians.  He said it is imperative for the PA to 
understand that disengagement should not occur under fire, 
for if the IDF and settlers are fired upon, Israel will have 
to react in a very harsh way.  The Palestinians need to be 
prepared to deploy their forces, take over the assets that 
Israel leaves behind and prevent radicals from asserting 
control in Gaza. 
 
4.  (C)  Sharon complained that Egypt is not doing enough to 
prevent smuggling into Gaza.  He said he had asked Mubarak in 
their last conversation to make a greater effort against 
smuggling but so far there has been no change.  This is 
making it more difficult for Israel to contemplate leaving 
the Philadelphi strip. 
 
5.  (C)  In response to a question, Sharon said that Israel 
has helped President Abbas in tangible ways, for example, 
releasing 500 prisoners and allowing deportees to return. 
Sharon has asked Vice Prime Minister Peres to work with 
Palestinians on such issues as building up infrastructure, 
social security, industrial zones, desalination and power 
stations.  Sharon said he personally likes the idea of 
providing a social security net for poor Palestinians.  On 
the other hand, Sharon said he is concerned about Hamas' 
participation in elections and the likelihood that Europe 
will remove Hamas from the list of terrorist organizations 
once Hamas joins the Palestinian Authority. 
 
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Settlements 
----------- 
 
6.  (C)  Senator Lieberman asked about Israeli construction 
in Ma'ale Adumin and whether more coordination is needed 
between the U.S. and Israel to define acceptable settlement 
activity in agreed settlement blocs.  Sharon responded that, 
since 1967, the U.S. has always objected to Israel's building 
of Jewish communities in the West Bank, Gaza and Golan 
Heights.  At the same time, all Israeli governments, on the 
left and on the right, have felt it important from a 
strategic perspective, to hold on to at least part of these 
areas.  Today, more than 250,000 Jews live in areas that were 
formerly under Jordanian occupation; this is the same area 
that historically was the cradle of the Jewish people. 
Sharon said the U.S. and Israel had agreed last year that 
settlement construction would be permitted within the lines 
of built-up areas in settlements, but the two sides did not 
discuss how this applied within the settlement blocs.  Sharon 
said he believes that Israel should be permitted to build 
within the outer line of construction of the settlement blocs 
so as to create contiguity for those areas that will always 
remain within the State of Israel.  He said there should not 
be a problem for Israel to build within the blocs. 
 
7.  (C)  Sharon asked rhetorically why in this case has 
Israel not defined the outer limit of the settlement blocs. 
He said that he does not know if or when Israel will be able 
to move forward, but he does know what the outer circle is of 
the settlement blocs.  Sharon repeated that when it comes to 
the settlement blocs and to areas which are state land, 
Israel should be able to build inside those areas.  The U.S. 
has told him not to expect American support for this 
position, but "in the meantime, we build."  Sharon said he is 
in a complicated internal situation in which his political 
problems are made harder each time the U.S. criticizes him 
about settlement construction.  Accordingly, Sharon said, "we 
need quiet and we need to be left alone." 
 
 
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Northern Front 
-------------- 
 
8.  (C)  Sharon said that Syria has not evacuated all of its 
forces from Lebanon and continues to look for ways to 
maintain its influence and control.  The Syrians and Iranians 
are relying on and working through Hizbollah.  Sharon said he 
fears that if the Syrians and Iranians are allowed to 
continue their activities, Lebanon could lose this 
opportunity to become an independent, democratic country. 
Sharon said that Lebanese elections should be held as soon as 
possible and that the Lebanese government should then 
confiscate all Hizbollah weapons.  Hizbollah, he said, cannot 
be a political party bearing weapons. 
 
9.  (C)  Sharon asserted that preparations are underway to 
move the headquarters of Palestinian terrorist organizations 
from Damascus to Lebanon.  He thought the new headquarters 
would be located in Palestinian refugee camps. (Note: In a 
separate meeting with Senator Lieberman later in the day, 
Israeli Military Intelligence BG Kupperwasser said there is 
evidence that Palestinian "assets," i.e. people and 
equipment, are moving from Syria into refugee camps in 
Lebanon, but that Palestinian terror headquarters remain in 
Damascus). 
 
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Iran 
---- 
 
10.  (C)  Sharon urged that the Iranian issue be brought to 
the Security Council as soon as possible.  He said Europe has 
already accepted the inevitability of Iran's developing 
nuclear weapons, and the U.S. seems to be relying on European 
diplomacy vis-a-vis Iran.  He said it is a very dangerous 
situation to be dealing with a country that speaks openly of 
its goal to eliminate the State of Israel.  For change to 
occur, Iran needs to be under pressure.  The Iranian people 
will push for change in Iranian policy only when they begin 
to suffer the effects of an economic boycott or financial and 
political pressure. 
 
11. (U)  Codel Frist and Codel Lieberman did not clear this 
message before their departure. 
 
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KURTZER