US embassy cable - 05TELAVIV4417

C O N F I D E N T I A L TEL AVIV 004417 
 
SIPDIS 
 
E.O. 12958: DECL: 07/18/2015 
TAGS: ECON, PREL, IS, GAZA DISENGAGEMENT 
SUBJECT: EIVAL GILADY'S VISION OF POST-DISENGAGEMENT GAZA 
 
Classified By: Charge d'affaires Gene A. Cretz for reasons 1.4 (b) and 
(d). 
 
1. (C) Summary: Brigadier General (res) Eival Gilady, a 
special advisor to PM Sharon on disengagement, met with 
Assistant Secretary Welch, Ambassador Kurtzer, and Lt. 
General Ward to discuss post-disengagement Gaza and future 
relations between Israel and Gaza.  Gilady said that Israel 
will not trust a third party to carry out customs enforcement 
at the Rafah crossing.  Gilady envisions a  construction boom 
in Gaza and a minimal Israeli "fingerprint" once 
disengagement is complete.  End summary. 
 
2. (C) Gilady said that it is in the interest of both the GOI 
and the PA to have the customs point between Egypt and Gaza 
moved to Kerem Shalom (where Egypt, Gaza and Israel meet) 
after disengagement is completed.  The GOI, however, will 
not, he said, trust a third party with customs enforcement at 
the Rafah crossing.  Regarding possible restoration of the 
Gaza airport, Gilady commented that "this is more a symbolic 
than an actual need (for the PA)." 
 
3. (C) Gilady said he foresees a Gaza construction boom 
within 6-8 months after disengagement is complete.  Over the 
course of the next six years Gilady said he would like to 
help attract investors to build 100,000-150,000 apartment 
units in Gaza.  In Gilady's view the construction should be 
completed by private investors, not the PA.  Gilady 
envisioned linking mortgage insurance for the new apartment 
owners to their employment, and said such a program would 
encourage the development of "moderates" in Gaza.  Gilady 
views construction as the main driver in Gazan economic 
recovery, as industries like tourism are more sensitive to 
security. 
 
4. (C) Gilady compared the path to, and aftermath in Gaza of, 
disengagement to the chaos of Yasir Arafat's funeral.  In the 
end, however, "Arafat ended up in the ground."  Gilady said 
that he wants the GOI fingerprint in post-disengagement Gaza 
to be minimal because "this if the first time that 
Palestinians will govern on their own." 
 
5. (C) Assistant Secretary Welch commented that real 
developments on the ground are needed to underline Gilady,s 
points because the Palestinians are not sure "that Gaza is 
going to be theirs."  He noted as well that the USG has 
invested major foreign policy resources in disengagement and 
wants the process to be a success.  Gilady agreed, but 
commented that it is better to get disengagement right, if 
not quite in time for the beginning of disengagement, than 
wrong but on time. 
 
6. (U) This message has been cleared by Assistant Secretary 
Welch. 
 
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CRETZ