US embassy cable - 03AMMAN4029

UNCLAS AMMAN 004029 
 
SIPDIS 
 
C O R R E C T E D  C O P Y//////ADDED SIGNATURE////// 
 
STATE PASS USTR for SAUMS 
USDOC for 4520/ITA/MAC/ONE/PTHANOS 
STATE PASS USAID 
 
E.O. 12958: N/A 
TAGS: ETRD, EINV, ECPS, JO, IS, IZ 
SUBJECT: PALESTINIAN BUSINESS GROUP VENTS FRUSTRATION 
 
1.  (U) Summary.   Under Secretary of Treasury John Taylor 
and Under Secretary of Commerce Grant Aldonas met with a 
group of Palestinian business leaders on the margins of the 
World Economic Forum on June 21, 2003 (attendees list at 
end of cable).  The business leaders discussed their 
skepticism about the current roadmap, severe restrictions 
on their ability to conduct normal business due to 
purported security concerns, their desire to be involved in 
Iraq reconstruction efforts, and the need for long-term 
technical assistance. End Summary. 
 
2.  (U) Where is the Economic Roadmap? 
The business delegation said they lacked confidence in the 
roadmap because, they said, it omitted economic concerns 
and the prospects of political benefits seemed distant. 
They nevertheless expressed support for the new Palestinian 
government, but said they needed tangible measures to 
ensure greater economic freedom before they could have 
faith in the process.   The business leaders expressed 
frustration with the perceived increase in the number of 
checkpoints since the announcement of the roadmap.  They 
produced a map illustrating the numerous checkpoints in the 
West Bank and Gaza, and explained how these checkpoints 
severely restrict their movements and their ability to 
conduct business, crippling the Palestinian economy. 
 
3.  (U) Security to Protect Markets 
The business leaders detailed examples of how they believe 
the Israeli government uses security as a protectionist 
commercial measure to restrict free markets.  One example 
involved the controlled entry of businessmen and blocking 
transit of goods into the Gaza Industrial Zone.   They 
requested assistance to designate the Gaza Industrial Zone 
as a special area insulated from security restrictions. 
The group also highlighted the withholding of 
communications equipment from Palestinian Cellular 
Communications Co. for approximately 20 months by Israeli 
customs agents.   The businessmen had doubts as to the 
legitimacy of the security arguments and instead believed 
the equipment was seized to give the Israeli telecom 
companies a commercial advantage. 
 
4.  (U) Piece of the Iraq Reconstruction Pie 
The group worried that they were being sidelined from 
current reconstruction efforts in Iraq and showed a strong 
desire to be involved.  They also noted that that their 
participation would be limited because of the restriction 
of their movements within the region.  They also felt that 
their export promotion efforts were underdeveloped and 
hampered by the closures. 
 
5.  (U) Technical Assistance Needed 
Mr. Tareq Abbas, son of Prime Minister Abbas, noted that 
they needed long-term technical assistance for building the 
Palestinian state.  Although they did not specify the areas 
in which they would benefit from technical assistance, they 
stated that they needed long-term support and assistance 
with implementation in a variety of areas.  He noted that 
USAID studies without follow up technical support were not 
as helpful. 
 
6.  (U) Attendees 
Undersecretaries Aldonas and Taylor met with: Mr. Sabih 
Masri, Chairman of Palestine Telecommunications Company; 
Mr. Zahi Khoury, Chairman National Beverage Company; Mr. 
Samer Khoury, CEO Consolidated Contractors Co.; Mr. Nassar 
Nassar, Chairman Palestinian Trade Center; Mr. Abdul Malek 
Jaber, Managing Director Palestine Industrial Estates 
Development and Investment Co.; Mr. Mosab Khorma, CEO 
Palestinian Telecommunications Co.; Mr. Hakam Kanafani, CEO 
Palestinian Cellular Communications; Mr. Tareq Abbas, 
Managing Director Sky Advertising; and Mr. Kamel Husseini, 
Managing Director Ellam Tam PR. 
GNEHM