US embassy cable - 05TELAVIV6847

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 006847 
 
SIPDIS 
 
E.O. 12958: DECL: 12/06/2015 
TAGS: PGOV, KIRF, IS, GOI EXTERNAL 
SUBJECT: KATSAV'S VATICAN VISIT POSITIVE, BUT NEGOTIATIONS 
PROGRESS HALTINGLY 
 
REF: VATICAN 00546 
 
Classified By: Political Counselor Norman Olsen for reasons 1.4 (b,d). 
 
1.  (C) Summary: MFA Division Director for Religious Affairs 
Zvi Tal briefed Poloff November 28 on President Moshe 
Katsav's November 17 Vatican meetings and on the status of 
GOI-Vatican negotiations toward a concordat on 
fiscal and legal matters.  Tal, who traveled with Katsav, was 
upbeat about the visit, but noted that Katsav did not hold 
any substantive discussion on the negotiations although he 
did commit to urging the GOI to move the negotiations 
forward.  Tal assessed that the GOI and Vatican teams have 
made progress on some issues in the negotiations, but said 
the core issue on tax status continues to be a "thorny" 
subject (see reftel).  End Summary. 
 
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Katsav Commits to Moving Negotiations Forward 
--------------------------------------------- 
 
2.  (SBU) MFA Division Director for Religious Affairs Zvi Tal 
told Poloff November 28 that President Katsav met privately 
November 17 with Pope Benedict XVI and Vatican Secretary of 
State Cardinal Angelo Sodano.  Katsav said that meetings 
focused on enhancing the bilateral relationship between 
Israel and the Vatican, including the initiation of a 
strategic dialogue and increasing academic and cultural ties. 
 Tal noted that Israel currently is working with the Vatican 
on various development projects in Brazil and several African 
countries.  He said that Israel and the Vatican are now 
discussing the possibility of trilateral cooperation 
involving the UN to provide humanitarian assistance to 
African countries. 
 
3.  (C) Tal said that during their meeting Katsav asked the 
Pope to issue statements against terrorism, racism, and 
anti-Semitism.  He said they both agreed on the need to 
spread the principles of Nostra Aetate ("in our epoch"), a 
declarative statement issued by the Catholic Church October 
28, 1965 on enhancing relations between the Catholic Church 
and other faiths, including Judaism.  In his meetings, Katsav 
gave his commitment to urge the relevant Israeli government 
ministries to move ahead to finalize a concordat on fiscal 
and legal matters with the Vatican.  Tal said that Katsav did 
not have any substantive discussions on this issue during his 
visit.  Tal said that Katsav invited the Pope to visit 
Israel, but assessed that such a visit would not take place 
until after an agreement is reached. 
 
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GOI-Vatican Negotiations Skirt Tax Issue 
----------------------------------------- 
 
4.  (C) Tal said that in their November 24 meeting, GOI and 
Vatican negotiating teams working on a concordat on fiscal 
and legal matters had finalized the issue of state funding to 
Vatican institutions "in principle."  Tal said that the 
Ministry of Justice "is willing to be as flexible as 
possible" in determining which church institutions meet the 
requirements to secure state funding.  The GOI and Vatican 
teams created a working group to develop criteria to be 
applied in determining allocation of state funding, Tal said, 
which is to report to the plenary negotiating session 
scheduled for either January 10 or 11.  Tal said that the 
teams also made progress on common text addressing the 
prohibition on the state to seize or confiscate movable 
property used by Vatican institutions for worship or 
devotional activities. 
 
5.  (C) The teams "left (national) taxation aside for now," 
according to Tal, as it is a "thorny issue" (reftel).  The 
Vatican is seeking assurance from the GOI, Tal said, that 
once an agreement is reached on taxation of Vatican 
institutions, that agreement will not be affected by any 
changes in Israeli law.  Tal said that the GOI does not want 
to exempt Vatican institutions from Israeli law.  Tal said 
that it is his understanding that the Vatican would not rule 
out accepting some rate of municipal taxation of its 
properties, which, Tal said, would be at about one-third the 
normal rate, if its institutions are compensated through 
state assistance.  Tal said that a working group addressing 
Vatican institutions' access to the courts met November 3 to 
discuss two GOI proposals and will be meeting again on 
January 4.  He said he is optimistic that this issue can be 
resolved. 
 
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