US embassy cable - 05TELAVIV4820

C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 004820 
 
SIPDIS 
 
E.O. 12958: DECL: 08/03/2015 
TAGS: KWBG, KPAL, PREL, ECON, EAID, IS, GAZA DISENGAGEMENT 
SUBJECT: GAZA DISENGAGEMENT UPDATE, AUGUST 4, 2005 
 
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b) and (d) 
 
This is a joint message from Embassy Tel Aviv and Consulate 
General Jerusalem. 
 
1.  (C) Summary:  This is the second in a series of regular 
reports tracking progress on disengagement coordination 
between the GOI and the PA.  The IDF will open Karni and Erez 
terminals two days a week for Gazans during "lockdown;" the 
GOI is considering a trilateral meeting on the passages; VP 
Peres suggested locating new cargo scanners on the 
Palestinian sides of the Gaza crossings in order to address 
Israeli security concerns; QSE Wolfensohn is pressing the GOI 
and PA to agree to start Gaza-WB convoys within weeks; the PA 
is ready to privatize the operation of the airport under 
third party operation; the PA Ministry of Housing and Public 
Works has the PA lead on the issue of settlement rubble; and 
the Palestine Economic Development Company (PEDC) will manage 
agricultural assets post-disengagement and employ Palestinian 
laborers currently working in the greenhouses. 
 
2.  (C) Summary cont: On humanitarian issues, international 
organizations will use Kissufim crossing to bring supplies 
into the Gaza Strip during disengagement.  On other 
disengagement-related issues, the GOI and PA held technical 
bilateral meetings August 3 on water, electricity, and 
telecommunications; QSE Wolfensohn met Ministers Dahlan and 
Mofaz August 3 for a second trilateral meeting; and the PA 
will use the Emirati donation of USD 100 million to build new 
housing in the soon-to-be evacuated Morag settlement.  End 
summary. 
 
3.  (C) Passages and Trade: 
 
-- The second crossings technical meeting was postponed to 
August 4, at the request of the PA delegation. 
 
-- MoD sources told USAID Director that the GOI is 
considering a trilateral meeting on the passages following 
the August 4 technical bilateral meeting. 
 
-- Vice Premier Peres told the Ambassador August 2 that he 
will attend the bilateral GOI-PA technical meeting and raise 
the possibility of locating new cargo scanners on the 
Palestinian side of the Gaza crossings.  In Peres, view, 
this will circumvent potential Israeli security concerns on 
the operation of the scanners. 
 
-- According to the Israeli MoD, the IDF will open Karni and 
Erez terminals two days a week during the period of 
"lockdown" prior to and during Israel,s withdrawal, in order 
to facilitate the movement of Gazan people and goods. 
 
-- An inter-ministerial GOI team returned this week from a 
study tour of U.S. scanner technology and is now considering 
contracting a U.S. private firm, such as Northrup-Grummon, to 
develop an integrated  security-management system for all of 
the crossings. 
 
-- COGAT head General Mishlev confirmed August 2 that, 
contrary to Israeli media reports, COGAT will maintain 
responsibility for permit issuance to Gazans after 
disengagement. 
 
-- On the customs union, PA Finance Minister Fayyad told 
Consul General August 2 that he believes there is no 
compelling reason to change the current customs union and 
believes the GOI's purported fears are based mostly on 
commercial concerns.  Fayyad said that the GOI fears the loss 
of the captive Gazan market, but he believes those fears are 
not justified since trade patterns do not historically change 
quickly.  (Full report on this conversation septel.) 
 
4.  (C) WB/Gaza Link: 
 
-- On the interim solution to have convoys operate between 
the West Bank and Gaza, QSE Wolfensohn is pressing both 
parties to agree to start the convoys within weeks, not 
months. 
 
5.  (C) Movement in the West Bank: 
 
-- COGAT head General Mishlev agreed with USAID Mission 
Director August 2 to work on a movement plan for northern 
West Bank schoolteachers to get to and from work, enabling 
Palestinian students to continue school even while withdrawal 
is carried out. 
 
6.  (C) Air/Seaports: 
 
-- PA Public Works and Housing Minister Mohamed Shtayyeh told 
Consul General August 2 that the PA is ready to privatize the 
operation of the airport and have a third party operate it. 
He also said the PA is willing to privatize the Palestinian 
airline and have a third party operate it as a small regional 
carrier with service to Cairo, the Gulf, Larnaca, and Amman. 
 
-- On the seaport, Shtayyeh confirmed that the PA would 
construct the seaport at the originally selected location, 
despite continued complaints from the World Bank about that 
location, and use the evacuated Netsarim settlement as the 
"campus" of the seaport. 
 
-- The roll-on roll-off concept for at least one pier of the 
seaport continues to be discussed, according to QSE team 
members.  The World Bank had been pressing a "Ro-Ro" port as 
the quickest way to set up a working port in Gaza. 
 
7.  (C) Settlement Housing: 
 
-- PA Public Works and Housing Ministry Mohamed Shtayyeh told 
Consul General August 2 that his ministry had been mandated 
by the PA cabinet to coordinate for the PA the removal of the 
rubble and is ready to implement whatever agreement is 
concluded.  He stressed that the PA hopes to set a precedent 
for how to handle future settlement dismantlement. 
 
-- Shtayyeh said that his ministry had created a database of 
all of the trucks, bulldozers, and other earthmoving 
equipment located in Gaza, both within the public and private 
sectors. 
 
-- Shtayyeh also noted that the Italian development agency 
and UNIDO had approached the PA and offered to spend USD 2.6 
million to purchase the equipment to "mince" the rubble so 
that it could be used as a base material in road construction. 
 
-- Shtayyeh noted that his engineers believe that recycled 
cement could prove a stronger building material than fresh 
cement. 
 
8.  (C) Greenhouses: 
 
-- The Palestine Investment Fund registered August 2 the 
Palestine Economic Development Company (PEDC) to manage the 
agricultural assets post-handover and to employ post-handover 
the Palestinian workers currently working in the settlement 
greenhouses.  Bassil Jaber, former head of the PA's Reform 
Coordination Support Unit, was named to head the PEDC. 
 
-- The PEDC plans to manage agricultural assets that remain 
standing post-disengagement.  It increasingly appears that 
USAID and others' attempts to purchase greenhouses from 
departing Israeli farmers will not be successful.  Every 
contact with senior PA officials has confirmed that it would 
be too politically damaging if President Abbas were to be 
seen as agreeing to, or even acquiescing to, the USG purchase 
of these assets. 
 
-- The Deputy Finance Minister Jihad al-Wazir described to 
QSE team members eleven teams that will take responsibility 
for areas from which the Israelis withdraw.  These teams will 
be reinforced by local government officials and PLC members 
to maintain control and keep order. 
 
9.  (C) Humanitarian issues: 
 
-- According to the Israeli MoD, the Red Cross, UNRWA, and 
other international organizations will use Kissufim crossing 
to bring food and humanitarian supplies into the Gaza Strip 
during and immediately following Israel,s withdrawal. 
Southern OC Commander Brig. Gen. Kohavi agreed that the IDF 
will facilitate movement into and out of Gaza for all 
international NGOs and humanitarian workers during this 
period. 
 
-- The GOI and PA have reached an agreement to allow 5,000 
Gaza Strip residents to be reunited with their family members 
in the West Bank.  According to the Israeli MoD, PA Civil 
Affairs Minister Dahlan is holding off on implementation 
until a similar agreement can be reached for West Bank 
residents with families in Gaza. 
 
10.  (C) Other issues: 
 
-- Israeli Vice Premier Peres told the Ambassador August 2 
that the Israeli cabinet will address withdrawal from the 
Philadelphi corridor in its August 8 meeting. 
 
-- At its August 7 meeting, the joint PA-GOI security 
committee will discuss GOI removal of unexploded mines and 
ordnance in the Gaza Strip.  General Mishlev said the GOI 
team will note that many of the Gaza mines are leftover from 
the period of Egypt,s presence in the area. 
 
-- QSE Wolfensohn met with Ministers Dahlan and Mofaz in the 
evening of August 3 in Tel Aviv.  This was the second 
trilateral meeting under the auspices of the QSE. 
 
-- PA Public Works and Housing Ministry Mohamed Shtayyeh told 
Consul General August 2 that the PA plans to use the recently 
announced USD 100 M donation from the Emiratis for new 
housing to be constructed in the soon-to-be-evacuated Morag 
settlement, per an initial agreement with the head of the PA 
Land Authority Freih Abu Meddein. 
 
-- According to PA Civil Affairs Minister Dahlan in a August 
1 written update to QSE Wolfensohn, the GOI 
cancelled August 1 bilateral technical meetings scheduled for 
later that day on water, electricity, and 
telecommunications.  Those meetings were rescheduled for 
August 3.  Palestinian press reported August 3 that the PA 
and GOI delegations for these meetings would be headed by 
Minister Dahlan and Minister Ramon and Vice Prime Minister 
Peres, respectively. 
 
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