VZCZCXRO9313
PP RUEHBC RUEHDH RUEHKUK RUEHROV
DE RUEHDM #0151/01 0530636
ZNY CCCCC ZZH
P 220636Z FEB 10
FM AMEMBASSY DAMASCUS
TO RUEHC/SECSTATE WASHDC PRIORITY 7384
INFO RUEHEE/ARAB LEAGUE COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 02 DAMASCUS 000151 
 
SIPDIS 
 
LONDON FOR MILLER, PARIS FOR NOBLES; DESK FOR PRM/ANE 
SHANNON QUINN 
 
E.O. 12958: DECL: 02/22/2020 
TAGS: KDEM KPAL PHUM PREF PREL SOCI SY
SUBJECT: PALESTINIAN REFUGEES: COMMISSIONER-GENERAL LATEST 
TO SOUND ALARM ON UNRWA FINANCES 
 
REF: A. DAMASCUS 50 
     ¶B. DAMASCUS 122 
 
Classified By: Acting CDA Andre Goodfriend for 
Reasons 1.4(b) and (d). 
 
¶1. (C) SUMMARY:  United Nations Relief and Works Agency 
(UNRWA) Commissioner-General Filippo Grandi and Deputy 
Commissioner-General Margot Ellis said February 21 UNRWA's 
operations assisting Palestinian refugees in Syria were "in 
serious trouble" and that "dramatic" changes are possible if 
the agency does not come up with sufficient money for its 
general fund.  During a briefing for ambassadors of donor 
countries, Grandi warned UNRWA's funding problems could have 
negative consequences for stability in the region and for the 
peace process.  The warnings echo recent statements by UNRWA 
Country Representative Roger Hearn (ref. A) and the Head of 
the SARG's General Authority for Palestine Arab Refugees 
(GAPAR) Ali Mustafa (ref. B).  In addition to finding a 
solution to UNRWA's funding woes, the agency's leadership 
said it was aiming to strengthen its advocacy for Palestinian 
refugees, even in the face of criticism that its advocacy 
verged on the political, and to improve the quality of 
services it provided those refugees.  END SUMMARY. 
 
"WE ARE IN SERIOUS TROUBLE" 
 
¶2. (C) Addressing ambassadors of UNRWA donor countries in 
Damascus on February 21, UNRWA Commissioner-General Filippo 
Grandi said UNRWA's current funding difficulties were 
"particularly acute" in Syria because 1) there was less media 
attention on the needs of the close to 500,000 Palestinian 
refugees in Syria after 60 years; and 2) UNRWA programs in 
Syria were dependent exclusively on core funding from the 
agency's nearly bankrupt "general fund."  Grandi said the 
situation was so dire in November that the agency did not 
know if it would make its December payroll.  Though UNRWA was 
able to obtain last minute donations to get through the end 
of 2009, Grandi concluded, "This can't continue." 
 
¶3. (C) Grandi's warning echoed recent statements by UNRWA 
Country Representative Roger Hearn and the Head of the SARG's 
General Authority for Palestine Arab Refugees (GAPAR) Ali 
Mustafa.  Hearn told us January 9 his organization's 
"surreal" financial situation was so dire it required 
immediate attention and might entail "a complete 
reconfiguration of the way UNRWA works in Syria" (ref. A). 
Mustafa articulated his concerns regarding the financial 
challenges facing UNRWA's Syria operations during a February 
11 courtesy call with CDA (ref. B).  Grandi and Hearn 
acknowledged UNRWA had encountered funding challenges for 
years, but insisted the agency's current financial situation 
was distinct in its severity in comparison with previous 
crises. 
 
¶4. (C) Hearn said the first program that might face cuts is 
the agency's hospitalization program, upon which 11,000 
Palestinian refugees in Syria rely annually.   Palestinian 
refugees in Syria are specifically barred from receiving SARG 
medical services, according to UNRWA officials.  Hearn 
related he was lobbying the SARG to do more with less funding 
for refugees, but he stressed UNRWA must have its core 
funding needs met regardless of the level of SARG assistance. 
 
¶5. (C) UNRWA's leadership argued that donor countries should 
step in to assist UNRWA's Syria programs because failure to 
do so would lead to long-term consequences for the stability 
of the region.  "This could even affect the peace process," 
Grandi claimed.  He added UNRWA's funding difficulties are 
strengthening conspiracy theories among Palestinians that 
donor countries were trying to "suffocate" UNRWA and "erase" 
the problem of Palestinian refugees from the global agenda. 
"All of this would have negative consequences for the 
region," Grandi warned. 
 
STRENGTHENING ADVOCACY FOR REFUGEES 
 
¶6. (C) In addition to tackling UNRWA's funding crisis, the 
agency's leadership said it was focusing on two objectives 
for the coming year: 1) strengthening advocacy on behalf of 
Palestinian refugees; and 2) improving delivery of UNRWA 
services to those refugees.  Grandi said UNRWA was trying to 
convince the Israeli government to open legal border 
crossings in Gaza to discourage smuggling, and to allow the 
importation of construction materials necessary for 
reconstruction.  "Some people criticize us for being 
political when we advocate for Palestinian refugees, but we 
are just doing our jobs," Grandi opined. 
 
 
DAMASCUS 00000151  002 OF 002 
 
 
¶7. (C) UNRWA's leaders praised Lebanese Prime Minister Saad 
Hariri's "very courageous" decision to tackle the issue of 
Palestinian access to the Lebanese labor market despite the 
political sensitivity of the issue in Lebanon.  They 
explained Lebanon's restriction on allowing Palestinians to 
work in the country was based on concern for Lebanese workers 
and also out of fear of "normalizing" the refugees' situation 
in Lebanon thus reducing the chance they could ever go home. 
Grandi said he hears the same concerns from Syrians when he 
advocates for greater services for Palestinian refugees.  "I 
have the same message here in Syria," Grandi said, "We can 
improve the rights of Palestinian refugees without changing 
their political context as refugees." 
 
AMBASSADORS REACT TO FUNDING PLEA 
 
¶8. (C) Ambassadors present at Grandi's briefing generally 
praised UNRWA's programs, but urged the organization to look 
at alternatives for raising funds.  One European ambassador 
said that Gulf countries have a responsibility to contribute 
more, to which Grandi responded that he is pleased with 
increasing contributions from Saudi Arabia, Kuwait, and 
Qatar.  Grandi acknowledged, however, that Arab countries 
remained reluctant to provide funding for UNRWA's general 
fund, as opposed to supporting specific projects such as Gaza 
reconstruction.  The British and French ambassadors urged 
UNRWA to reach out to public opinion in donor countries as a 
way of raising awareness.  Acknowledging his country's recent 
decision not to fund the agency's regular budget, the 
Canadian ambassador asked Hearn about staff costs and 
overhead at the agency.  UNRWA's leadership insisted its 
overheard is lower in comparison to similar organizations. 
 
¶9. (C) COMMENT: UNRWA's funding problems are not new, and the 
agency's leadership has frequently gone to donor countries 
asking for additional assistance over the years.  But 
according to UNRWA representatives and SARG officials the 
agency is currently facing a more severe financial crisis. 
UNRWA's continued existence in Syria is not in doubt in the 
short-term.  Despite his warnings, Hearn told us the SARG 
would not "allow" UNRWA's Syria efforts to die because it was 
too important to them politically.  Indeed, Syria's 
Palestinian assistance chief told us ref. B that the SARG's 
budget had reached over $220 million and was not in danger. 
It is possible, however, that the agency will have to 
significantly scale back on some important programs for 
Palestinian refugees here unless a long-term solution is 
found to its current funding crisis.  END COMMENT. 
 
 
GOODFRIEND