US embassy cable - 05TELAVIV6639

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 006639 
 
SIPDIS 
 
E.O. 12958: DECL: 11/25/2015 
TAGS: PREL, PGOV, KWBG, IS, GOI INTERNAL 
SUBJECT: AMBASSADOR JONES'S COURTESY CALL ON INTERIOR 
MINISTER OFIR PINES-PAZ 
 
 
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d) 
 
1.  (C) Summary:  In their introductory meeting on the day of 
the Labor leadership election, Interior Minister Ofir 
Pines-Paz told the Ambassador that regardless of who wins, it 
was not a foregone conclusion that Labor would stay in the 
coalition because it has two major disagreements with Likud. 
Pines-Paz said that Labor wants a "strategic change" in 
budget priorities away from defense spending toward social 
welfare programs, to which, he said, Finance Minister Ehud 
Olmert does not seem to have agreed.  He also commented that 
Labor wants the GOI to come up with a concrete plan to remove 
illegal outposts rather than simply make declarations on this 
issue without carrying them through.  Pines-Paz revealed that 
after a flurry of initial activity, Justice Minister Tzipi 
Livni's inter-ministerial committee formed in response to the 
Sasson report had not met for several months.  The members 
have been waiting for Livni's position paper on the report 
before approving any final recommendations.  (Note:  Ha'aretz 
reported on November 23 that the Justice Ministry has 
rejected four out of the Sasson report's eight proposed 
amendments to prevent more outposts from being established. 
End note.)  End summary. 
 
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Labor's Disagreements with Likud 
-------------------------------- 
 
2.  (C) Interior Minister Ofir Pines-Paz on November 9 (the 
day the Labor leadership election was held) told Ambassador 
Jones that regardless of who won the election, it was not a 
foregone conclusion that Labor would stay in the coalition 
because Labor has two major disagreements with Likud:  the 
budget and outposts.  He explained there has not been a lot 
of "noise" about these disagreements because Peres and Prime 
Minister Ariel Sharon have handled things "amongst 
themselves," but noted that these issues will have to be 
dealt with now that Gaza disengagement has been implemented. 
 
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More Social Spending in Budget Priorities 
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3.  (C) With respect to the budget, Pines-Paz emphasized that 
Labor is looking for a major shift in the budget's 
priorities.  He commented that Labor officials want more 
spending on social programs, and opined that while Finance 
Minister Ehud Olmert seems willing to provide more funds in 
this category, he has only agreed to some minor readjustments 
and not to the "strategic changes" Labor wants.  Pines-Paz 
told Ambassador Jones that the GOI could cut the Ministry of 
Defense's budget because "there must be savings from the 
disengagement plan," and because terror attacks decreased in 
2005 so there is "less to fight against." 
 
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GOI Should Remove Outposts 
And Negotiate with Abbas 
-------------------------- 
 
4.  (C) The Labor party also wants the GOI to prepare a 
concrete plan to remove illegal outposts, according to 
Pines-Paz, because, he said, it is not enough to make 
declarations without carrying them through.  He remarked that 
Israel has an agreement with the USG to remove 20-24 
post-March 2001 outposts, and should fulfill it.  (Note:  USG 
settlement watchers count 44 post-March 2001 outposts.  End 
note.)  He continued that Labor members also want Israel to 
negotiate with Palestinian Authority (PA) President Mahmud 
Abbas according to the road map because they believe he is a 
partner.  Pines-Paz cautioned that he does not know if Abbas 
"can deliver," but opined that Israel should give him some 
time and conceded to the Ambassador that GOI actions 
influence Abbas's ability to govern.  Pines-Paz stressed that 
the PA and GOI cannot afford to lose the momentum created by 
Gaza disengagement because terrorists and extremists on both 
sides will step in to fill the vacuum. 
 
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Livni's Committee on Sasson Report 
---------------------------------- 
 
5.  (C) In response to the Ambassador's question on Justice 
Minister Tzipi Livni's inter-ministerial committee on the 
Sasson report, Pines-Paz -- a member of the committee -- 
responded that Livni needs to do much more.  He reported that 
the committee had ten meetings when it was first formed, but 
then stopped because there was no point in repeatedly meeting 
without a position paper, by Livni, on which to base 
decisions.  He claimed that Livni has not yet prepared any 
recommendations.  (Note:  Ha'aretz on November 23 reported 
that the Justice Ministry has rejected four out of the 
report's eight proposed amendments to prevent more outposts 
from being established.  End note.) 
 
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Evacuees Leaving Slowly but Surely 
---------------------------------- 
 
6.  (C) Pines-Paz told Ambassador Jones that the reason so 
many Gaza settler evacuees are still in hotels is because 
they want to keep their communities together.  They have not 
looked for permanent housing, even though ample compensation 
from the GOI enabled them to do so.  He mentioned, however, 
that approximately 40-50 families are leaving the hotels each 
week, and that they should all be gone by the end of 
December.  He said that there were originally 1,200 families 
in hotels, but that fewer than 400 families now remain.  He 
admitted that it is costing the GOI a lot of money to support 
the evacuees, which is "problematic," but emphasized that the 
problem is being solved as the evacuees slowly move out of 
hotels to more permanent quarters. 
 
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JONES