US embassy cable - 05AMMAN4369

C O N F I D E N T I A L AMMAN 004369 
 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
RUBINSTEIN/GREENE/GERMAIN/LOGERFO; TREASURY FOR 
MILLS/DOWNARD; NSC FOR ABRAMS/DANIN/MUSTAFA 
 
E.O. 12958: DECL: 06/02/2015 
TAGS: PREL, PGOV, ECON, KWBG, IS 
SUBJECT: ASSISTANT SECRETARY WAYNE,S MAY 18 MEETING WITH 
PALESTINIAN AUTHORITY FINANCE MINISTER FAYYAD 
 
 
Classified By: CHARGE DAVID HALE FOR REASONS 1.4 (B) AND (D). 
 
FY 2005 Supplemental 
-------------------- 
 
1.  (C) On the margins of the BMENA Trade and Investment 
conference in Amman on May 18, PA Finance Minister Salam 
Fayyad acknowledged to Assistant Secretary E. Anthony Wayne 
that he had found the Congressional debate of the PA's 
worthiness of the supplemental request stressful and contrary 
to the spirit of the Administration's request.  He noted that 
the approved version (and the designation of USD 50 M for 
Israel) had received widespread negative coverage locally. 
He said he had been surprised since it was contrary to the 
spirit of the relationships that he had forged with many 
members of Congress.  Nevertheless, Fayyad said that the PA 
would continue to do the best that it could to earn the trust 
and confidence of its friends.  A/S Wayne said that the USG 
remained committed to working together with Fayyad, Quartet 
Envoy James Wolfensohn, and other partners. 
 
Request for a Cash Transfer 
--------------------------- 
 
2.  (C) Fayyad said that he would like to work with the USG 
on a cash transfer to the PA of the remaining FY 05 Economic 
Support Funds.  He said he had read the record of the 
supplemental debate and there appeared to be an understanding 
in Congress that a presidential waiver could be used on the 
remaining FY 05 money.  Fayyad said that such a transfer 
would provide the PA with much needed assistance.  Fayyad 
said that if this could be prepared for President Abbas' 
visit to Washington, Abbas would be very pleased.  According 
to Fayyad, it would give him encouragement and something 
tangible with which to go back home and would balance out the 
$50 million for Israel in the supplemental.  Wayne said he 
would explore this with colleagues in Washington.  Fayyad 
said that if the PA had been able to get the full USD 200 M 
then he would not have raised this issue.  (Note: The 
President subsequently announced May 26 a USD 50 M cash 
transfer to the PA for infrastructure projects in the Gaza 
Strip.  End Note.) 
 
Disengagement 
------------- 
 
3.  (C) Fayyad acknowledged that the PA had taken a bit of a 
hiatus earlier on disengagement planning but that it was now 
engaged and working hard.  He noted that the PA still did not 
have all of the settlement asset information that it needed 
for planning purposes and that it was essential that this 
information be shared by the GOI as soon as possible.  (Note: 
As of May 31, PA officials reconfirmed to ConGenOffs that the 
GOI had not yet begun to share the requested asset inventory 
information with the PA.  End note.)  Fayyad said that the PA 
was strongly considering hiring a management company to 
oversee the selection of successful bidders to lease the 
assets while the PA decided the final disposition of the 
assets.  By focusing on a short-term, temporary solution 
while the longer-term issues were considered and resolved, 
the PA would be seen as being more proactive and build 
confidence in its ability to manage the situation, according 
to Fayyad. 
 
4.  (C) In terms of the other disengagement issues for 
discussion with the GOI, Fayyad said he believed that 
everything was negotiable.  His main concern, he said, was to 
ensure that the customs union would not be abrogated but kept 
the way it currently was.  Fayyad stressed that all efforts 
must be expended to guarantee that a post-disengagement Gaza 
is not a sealed-off Gaza and to guarantee access to the West 
Bank and the world. 
 
5.  (U)  This message was cleared by Assistant Secretary 
Wayne. 
HALE