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DE RUEHTV #0467/01 0591656
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FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5604
INFO RUEHAM/AMEMBASSY AMMAN PRIORITY 3715
RUEHAK/AMEMBASSY ANKARA PRIORITY 4239
RUEHRL/AMEMBASSY BERLIN PRIORITY 0412
RUEHKO/AMEMBASSY TOKYO PRIORITY 0448
RUEHJM/AMCONSUL JERUSALEM PRIORITY 9174
RHEHNSC/NSC WASHDC PRIORITY

C O N F I D E N T I A L TEL AVIV 000467 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 02/28/2018 
TAGS: PREL EAID KWBG TU JO JA GE IS
SUBJECT: PRESIDENT PERES PROPOSES AGREEMENTS ON WEST BANK 
INDUSTRIAL PARKS IN TIME FOR THE POTUS VISIT 
 
 
Classified By: Ambassador Richard H. Jones, Reason 1.4 (b) (d) 
 
 ¶1.  (C) Summary and Comment.  At the latter's request, the 
Ambassador called on President Shimon Peres the evening of 
February 27.  Peres said he wanted to ensure that President 
Bush's May visit produce positive results.  Noting that he 
did not think a political agreement with the Palestinians 
would be ready by May, Peres suggested that the symbolic 
inauguration of work on three industrial parks in the West 
Bank (sponsored by Japan, Germany, and Turkey), as well as 
the signing of an Israeli-Jordanian Memorandum of 
Understanding on the Red Sea to Dead Sea Peace Valley 
project, be the central deliverables of the President's 
visit.  In addition, Peres proposed that the President 
address a May 14 evening event that Peres is organizing to 
thank America for its steadfast support throughout the sixty 
years since Israel's founding.  Peres described Defense 
Minister Barak's approval as critical to having the West Bank 
industrial parks ready for initiation by May.  Noting that he 
would continue to engage Barak himself, he also urged that 
Secretary Rice press Barak to "resolve any obstacles" to 
 
SIPDIS 
these projects during her March 4-5 visit.  Peres recommended 
the Secretary could accomplish this in a joint meeting with 
Barak and PA Prime Minister Fayyad during her visit.  As for 
the Peace Valley MOU, Peres said it was ready for signing by 
King Abdullah, while he was introducing legislation in the 
Knesset that would designate the Peace Valley as a 
prioritized national project.  In response to the 
Ambassador's observation that no one in the GOI was actively 
promoting economic development in the West Bank, Peres said 
even though the three industrial parks would take years to 
complete, just starting construction would create economic 
opportunities and hope in the West Bank.  Comment:  It is not 
clear to what extent Peres has coordinated this approach with 
PM Olmert, whose support will also be critical.  He is 
correct that without Barak's full backing, nothing will move. 
 We request guidance on how to respond to Peres' vision for 
the May POTUS visit.  End Summary and Comment. 
 
¶2.  (U) The Ambassador, accompanied by Econ Couns and Pol 
Couns, called on President Shimon Peres February 27.  Peres 
was joined by policy adviser Orry Ben Porat and military aide 
BG Shimon Hefetz.  Peres explained that he wanted to discuss 
President Bush's May visit.  This would likely be the 
President's last official visit to Israel, and Peres wanted 
him to leave with some tangible accomplishments.  A political 
agreement with the Palestinians is not likely to be ready by 
May, and more "photo ops" are not needed, he argued. 
 
¶3.  (SBU) Peres said his idea was to make the official 
commencement of work on the three foreign-sponsored, Tony 
Blair-backed industrial parks in the West Bank (near Jenin, 
Tarqumiya and Jericho and sponsored by Germany, Turkey, and 
Japan) be the center-piece of the President's visit, along 
with the signing of an Israeli-Jordanian MOU on the Peace 
Valley project.  While noting that there remained a number of 
obstacles to getting the industrial parks moving, Peres said 
making the President's visit the target gate would give 
impetus to current discussions between the PA, the Ministry 
of Defense, and the donors.  Noting the Secretary Rice will 
visit March 4-5, Peres suggested that the Secretary meet with 
PM Fayyad and Barak jointly to resolve outstanding issues. 
 
¶4.  (C) Peres said he had told Barak that while he understood 
Barak had to be tough in Gaza, he should be easy on the West 
Bank.  Peres said Barak had been very impressed with the 
Turks during a visit to Ankara two weeks ago, and this should 
help Barak adopt a more supportive attitude toward the 
industrial parks.  In response to the Ambassador's question 
whether MOD Director General Pinhas Buchris, whom Barak has 
appointed to be responsible for working with the PA and the 
donors on the industrial parks, was the right man for the 
job, Peres said the appointment was not important because 
Barak himself would make all the decisions.  Peres said he 
had also raised the issue with the commander of the IDF 
Central Command (responsible for the West Bank), MG Gadi 
Shamni, telling Shamni that he needed to do his part to 
ensure that the industrial parks were ready to go by mid-May. 
 In response to the Ambassador's comment that no one in the 
GOI was actively advocating for Palestinian economic 
development, Peres said that launching the three industrial 
parks would make a big difference.  While it would take 
several years for the parks to start production, the 
construction alone would generate thousands of jobs and 
create hope among Palestinians. 
 
¶5.  (SBU) Regarding the Peace Valley project, Peres said 
there was a positive development in the Jordanian attitude. 
Representatives of the American engineering firm MWH were 
currently in Amman, where they were being positively 
received.  Peres said his office had drafted an MOU 
requesting MWH prepare a work proposal.  The MOU will be 
ready for King Abdullah and PM Olmert to sign, Peres said, as 
soon as the Knesset passes a bill to make the Peace Valley 
project a national priority.  (The Jordanian Ambassador 
confirmed on February 28 that Peres has discussed this idea 
with his government.  However, he stressed that Peres has not 
tabled a text for the MOU.)  In addition to visiting the 
sites of the industrial parks, President Bush could attend a 
signing ceremony for the Peace Valley MOU. 
¶6.  (SBU) As for the rest of the President's May program, 
Peres said he hoped the President would give a speech to the 
May 14 evening event that Peres is organizing to thank 
America for its steadfast support of Israel throughout the 60 
years since its founding. Peres said such a speech would make 
a bigger impact than addressing the Knesset, in part because 
Knesset protocol would require four Israeli speeches (by 
Knesset Speaker Itzik, Opposition leader Netanyahu, PM Olmert 
and Peres) in addition to the President.  Peres suggested the 
President bring a bi-partisan Congressional delegation with 
him to underscore the bi-partisan nature of U.S. support for 
Israel.  He added that it would be difficult to convene the 
Knesset for an address by President Bush at the same time as 
his event in any case due to the massive security 
arrangements and the two venues' proximity. 
 
¶7.  (C) Comment.  While Peres claimed to have coordinated his 
concept with PM Olmert, it is not clear to us that Olmert, 
who is traveling, is fully on board.  We agree with Peres, 
however, that Barak's support is absolutely essential to 
reaching agreement on the industrial parks.  We request 
guidance on how to respond to Peres' initiative. 
 
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