This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 001318 
 
SIPDIS 
 
DEPT FOR NEA/IPA 
 
E.O. 12958: DECL: 03/31/2016 
TAGS: IS KPAL PGOV PHUM PREL PREF EAID ISRAELI PALESTINIAN AFFAIRS HUMANITARIAN AID GOI EXTERNAL
SUBJECT: FM LIVNI SEEKS NEW MECHANISM FOR DELIVERING AID TO 
PALESTINIANS 
 
REF: TEL AVIV 1158 (NOTAL) 
 
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b,d). 
 
¶1.  (C) SUMMARY: Foreign Minister Tzipi Livni asked NEA A/S 
David Welch and DAPNSA Elliott Abrams on March 30 for USG 
help in formulating a new mechanism to deliver aid directly 
to the Palestinian people; without this mechanism, she said, 
other donors might "take their own decisions" and use a 
delivery method that helps or legitimizes the Hamas-led PA. 
Livni also said that efforts to keep the crossings open could 
weaken efforts to undermine Hamas.  She suggested that a new 
crossings protocol might prevent daily meetings between 
Israelis and "Hamas customs officials."  A/S Welch responded 
that the USG seeks to draw attention to the failures of 
Hamas, and that, in doing so, "we must make clear that we are 
not collectively punishing the Palestinian people."  When 
Livni questioned the value of the USG or GOI continuing 
contact with PA President Mahmud Abbas, Welch explained that 
the USG wants "to ensure that those who say 'yes' still have 
an address in the U.S."  Welch reported that the recent Arab 
League Summit pledged only the usual amount for the PA and 
did not move to replace the financial support that non-Arab 
donors have withdrawn; such pledges have rarely been fully 
satisfied.  Livni reported that she received assurances from 
UN Secretary-General Kofi Annan and from officials in London, 
Paris, Vienna and Ottawa that they strongly support the three 
conditions that Hamas must meet in order to receive 
international aid or contact, but added that she worries that 
the Russians may soon propose a new Middle East initiative 
which could serve to legitimize the Hamas-led PA.  END 
SUMMARY. 
 
--------------------------------------------- --- 
NEW MECHANISM FOR DELIVERING AID TO PALESTINIANS 
--------------------------------------------- --- 
 
¶2.  (C) Livni, Welch and Abrams agreed that health and 
education form the most important priorities for humanitarian 
assistance.  Livni told A/S Welch and DAPNSA Abrams, however, 
that she would like the USG to help formulate a new mechanism 
to deliver aid directly to the Palestinian people; without 
this mechanism, she said, other donors might "take their own 
decisions" and use a delivery method that helps or 
legitimizes the Hamas-led PA.  "We need to think of an idea, 
a trustee, an organization," Livni said.  "We (the USG) don't 
need a new mechanism to deliver our assistance," Welch 
replied, "but that doesn't mean we wouldn't support one for 
others."  Welch said that the USG can take the lead on this 
issue.  The USG has grown uncomfortable, Welch explained, 
with the tenor of discussion on assistance within the 
Quartet, and prefers for discussion now to take place among 
the major donors.  Abrams added that we do not yet know the 
extent of revenue that the PA may derive from internal 
sources or external donors, such as the Arab governments; he 
was skeptical about Arab support. 
 
¶3.  (C) Abrams stressed that USG policy aims to withhold 
direct aid to the PA in order to force the government either 
to change or to fail.  Welch said that the USG will not 
provide direct assistance to the PA.  There could be 
exceptional cases, rare circumstances, such as humanitarian 
emergencies like the avian flu crisis.  If there are any 
other desirable projects that fall outside the humanitarian 
aid field, the GOI should notify us, said Welch.  While we 
cannot guarantee that we will approve them, he said, we will 
consider them on their merits.  Livni flagged the importance 
of finding a non-governmental mechanism to transfer money to 
Palestinian farmers who suffered financial losses as a result 
of avian flu.  "I prefer," she stressed, "even in crisis not 
to transfer money to Hamas because it gives them legitimacy." 
 Welch agreed and asked Livni to inform the USG of GOI 
interest in any other exceptions if such an interest should 
develop in the future.  Welch also reported that the USG will 
soon announce its humanitarian assistance strategy, noting 
that the EU will declare a similar strategy, but on a 
separate occasion; a joint U.S.-EU press release, Welch 
explained, might highlight divisions within the Quartet. 
 
------------------------------ 
NEW PROTOCOL FOR THE CROSSINGS 
------------------------------ 
 
¶4.  (C) Livni said that efforts to keep the crossings open 
could weaken efforts to undermine Hamas because monitoring 
the crossings requires constant contact with officials of the 
new Hamas government.  "If we are demanding that the 
Europeans no longer keep contact with the PA," Livni 
responded, "then how can we do so ourselves?"  She suggested 
that a new customs protocol might help prevent "Israelis from 
having to meet Hamas customs officials every day."  Welch 
noted that the USG seeks to draw attention to the failures of 
Hamas, and that, in doing so, "we must make clear that we are 
not collectively punishing the Palestinian people."  The 
Ambassador stressed that Hamas must fail because of their own 
actions. 
 
---------------------------- 
CONTACT WITH PRESIDENT ABBAS 
---------------------------- 
 
¶5.  Livni also questioned the value of the USG or GOI 
continuing contact with PA President Mahmud Abbas.  Welch 
explained that the USG wants "to ensure that those who say 
yes still have an address in the U.S.  If Hamas says yes 
three times then they have one, too.  If not, then we want 
them to fail."  Abrams emphasized, "Our message is: 'change 
or fail.'"  Welch added, "We will not be transferring any 
money through President Abbas.  We may provide it to him, but 
we have no special plans to do so."  Welch informed Livni 
that the USG has instructed personnel worldwide of our policy 
prohibiting contact with PA government officials.  He 
stressed that the policy bans contact with anyone whose chain 
of command leads to the Prime Minister, including lower-level 
officials in the ministries. 
 
--------------------------------- 
ARAB FINANCIAL SUPPORT FOR THE PA 
--------------------------------- 
 
¶6.  (C) Welch and Abrams reported that Arab governments at 
the March 28 - 29 Arab League Summit in Khartoum said that 
they will continue to provide $55 million per month to the 
PA, but they did not pledge to replace what other donors 
previously provided.  Welch noted that these governments have 
not in the past been very reliable in delivered on aid 
pledges.  The USG plans, Welch added, to work bilaterally 
with each government to encourage them not to do so now and 
certainly not to replace the aid to the PA that major donors 
have stopped providing. 
 
------------------------------------------ 
THE UN, EUROPEANS, CANADIANS, AND RUSSIANS 
------------------------------------------ 
 
¶7.  (C) Livni reported that she told UN Secretary General 
Kofi Annan about the letter that UN Envoy Alvaro De Soto sent 
to the GOI seeking the release of the six Jericho prisoners 
(reftel).  She said that she believes that De Soto will soon 
meet PM Haniye.  Livni said that Annan appeared unaware of De 
Soto's actions, but that he assured her that he will stay 
strong on the three conditions, and will not compromise on 
them. 
 
¶8.  (C) Livni said that during her March 1 - 3 meetings with 
officials in Paris, London and Vienna she received assurances 
that their governments strongly support the three conditions. 
 "Underneath this stated support," Livni added, "I felt like 
they were looking for a way to support the Palestinians with 
humanitarian aid.  They don't have a clue, though, how to 
deliver the aid, in technical terms."  A/S Welch said that he 
thinks the USG can influence how the Europeans ultimately 
decide to deliver aid.  "We have some differences on the 
issue of contacts," Welch said, "but we're in line on the 
issue of delivering humanitarian assistance."  Livni also 
said that in a recent phone conversation, Canadian Foreign 
Minister Peter MacKay told her that the Canadian government 
stands strongly against terrorism, and will support any step 
to fight it.  Livni said that she thinks that the Canadians 
want to be more involved.  Welch said that the Canadians may 
assume a leadership role in a meeting of major donors 
scheduled for the third week of April. 
 
¶9.  (C) Livni said that she had a phone call "a few weeks 
ago" with Russian Foreign Minister Sergei Lavrov.  "I didn't 
like his tone," Livni said.  She reported that his statements 
to her -- "we have to find a way to promote a new process," 
"we have to face the new reality," and " we have to find a 
new way out of the situation" -- suggest that the Russians 
may soon propose a new Middle Eastern initiative that serves 
to legitimize the Hamas-led PA. 
¶10.  (U) NEA A/S Welch cleared this cable. 
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