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

UNCLAS SECTION 01 OF 02 TEL AVIV 006657 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: KWBG ECON IS GAZA DISENGAGEMENT ISRAELI PALESTINIAN AFFAIRS
SUBJECT: AMBASSADOR AND GAZAN BUSINESS LEADERS DISCUSS PA 
SECURITY, DISENGAGEMENT PLANNING 
 
 
This message is sensitive but unclassified.  Please protect 
accordingly. 
 
¶1.  (SBU) Summary: The Ambassador met December 23 with Pepsi 
Gaza CEO Mohammed Yazgi, Gaza Bus Company President Mohammed 
Abu Ramadan, and engineer and insurance company head Ahed 
Bseiso -- three Gazan businessmen who also lead the private 
enterprise organizations PalTrade and the Palestinian 
Business Association.  The group focused on PA security, with 
the Ambassador noting that a clear effort on the part of the 
security services to find those who had killed three Embassy 
security personnel would encourage the USG to consider 
re-entering Gaza.  The businessmen emphasized the disarray of 
the security services overall and the importance of security 
"on the street" to private enterprise.  They described Gaza 
disengagement as "breaking apart the road map" and noted that 
PM Sharon could make the new PA either strong or weak, adding 
that they urge the USG to monitor the peace process closely. 
On the border crossings, the men related instances of what 
they deemed unnecessary IDF-ordered delays, while the 
Ambassador described potential positive GOI steps towards 
greater freedom of movement.  The three agreed to the 
Ambassador's suggestion of a joint Israeli-Gazan business 
meeting to be arranged by the Embassy.  End Summary. 
 
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Security: Finding The Killers 
----------------------------- 
 
¶2.  (SBU) The Ambassador opened the meeting by expressing 
regret that USG personnel are not traveling to Gaza in the 
wake of the October 2003 killings of three Embassy security 
personnel.  In response to Ahed Bseiso's comment that this 
policy appeared to be "collective punishment," the Ambassador 
responded that it was instead a reflection of the USG's deep 
dissatisfaction with the way the PA security services 
"dropped the issue" after a handful of seemingly productive 
meetings.  The security services would have to demonstrate 
clear effort to solve the case and progress on reform 
initiatives, rather than perfection in these efforts, in 
order for the USG to consider returning to Gaza. 
 
¶3.  (SBU) The businessmen described the PA security services 
as weak and fragmented -- "20 groups" vying with each other 
for primacy instead of two or three working together -- and 
said that while in some cases the services even know the 
identities of criminals, they cannot interfere.  More 
importantly, Palestinian witnesses to crimes do not come 
forward with information because they know the police are 
unable to protect them.  Abu Ramadan expressed certainty that 
this is true in the case of the murder of the USG personnel. 
 
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Security is Business' Top Priority 
---------------------------------- 
 
¶4.  (SBU) The three men repeatedly emphasized the importance 
of security to the success of Gazan private enterprise. 
Pepsi bottler Mohammed Yazgi noted that in meetings with Abu 
Mazen the business community has requested security reform 
first and foremost, even before requests for economic reforms 
and assistance to private enterprise.  Bseiso added that 
while he believes Gazan police are making an attempt to get a 
handle on "street security," they have not succeeded.  Arafat 
had controlled the security services since 1967, he said -- 
that culture and mentality cannot change overnight. 
 
-------------------------------------------- 
Disengagement: "Breaking Apart the Road Map" 
-------------------------------------------- 
 
¶5.  (SBU) Yazgi, Abu Ramadan, and Bseiso said that while 
Israel plans for disengagement and the World Bank and donor 
community formulate their responses, Gazans have "no voice" 
in the process and no clear picture of what it will mean for 
private enterprise.  The men said they fear that separate GOI 
disengagement policies towards Gaza and the West Bank will 
break apart components of the road map, to the detriment of a 
negotiated final status. 
 
¶6.  (SBU) The Ambassador responded that the USG views 
disengagement as a positive step and will support it as long 
as it is not the "end of the road" of GOI engagement.  With 
Arafat gone, he explained, there is no excuse for Israel, the 
PA, or the U.S. not to move forward on the road map.  The 
three men said they view the U.S. as the only appropriate 
third party to diligently monitor road map implementation at 
this juncture. 
 
---------------------------------- 
Will Sharon Help or Hinder New PA? 
---------------------------------- 
 
¶7.  (SBU) Bseiso then raised the question of PM Sharon's 
willingness to empower Abu Mazen and the new PA leadership. 
Both politically and security-wise, he said, Israel has the 
power to make the PA either strong or weak.  He added that in 
his view PM Sharon did nothing to help Abu Mazen when he 
became Prime Minister.  The Ambassador said that Sharon has 
recently begun to believe now is the right time to take 
numerous steps he could not take when Arafat was in power. 
After the PA elections, he said, it seems Sharon will be 
willing to talk to Abu Mazen, and in fact must find a way to 
do so regarding disengagement issues like settlement assets 
and the maintenance of Israeli-Palestinian business ties. 
 
---------------------------- 
Movement of Goods and People 
---------------------------- 
 
¶8.  (SBU) The men expressed their continued vital interest in 
the free movement of goods and people in and out of Gaza. 
They related a variety of difficulties at the border 
crossings, including a recent delay at Erez during the 
processing of new magnetic cards for long-term permit holders 
that resulted in only 100 cards being issued over a ten-hour 
day.  Abu Ramadan argued that Rafah has a daily capacity of 
over 3,000 people, yet the IDF slashes that number even to 
150 when they are "in a bad mood."  On the movement of goods, 
Yazgi pointed out that it costs a Gazan over USD 4,000 to 
import a container of goods from the U.S. -- USD 1,000 all 
the way to Ashdod port and USD 3,000 from Ashdod into Gaza 
due to delays at Karni terminal. 
 
¶9.  (SBU) The Ambassador said that the World Bank has also 
emphasized the importance of freer movement for goods and 
people, and added that technological improvements and 
possible privatization of terminal operations could 
ameliorate the current situation.  The USG supports a Gazan 
airport and seaport, he continued, and wants to see the 
security situation improve to a point where these are 
possibilities.  Sharon has meanwhile agreed to the 
"compromise" of a transport helicopter between Jordan and 
Gaza, something he refused to consider six months ago.  "We 
are 10% of the way" towards a number of World Bank 
post-disengagement economic goals, he said. 
 
-------------------------------------- 
Planned Gazan-Israeli Business Meeting 
-------------------------------------- 
 
¶10.  (SBU) The Ambassador asked the businessmen if they would 
like Embassy assistance in arranging a meeting with Israeli 
counterparts to discuss economic aspects of Gaza withdrawal. 
The three agreed such a meeting would be beneficial, noting 
that they had held similar meetings in the past with good 
results.  They added that the Gazan private sector is 
planning a conference on disengagement in the coming weeks 
that will address issues like the crossings, agribusiness, 
settlement assets, and industrial zones.  They agreed to 
liaise with Embassy Economic section to arrange a joint 
Israeli-Gazan business meeting that may include working-level 
GOI interlocutors as well as representatives from the private 
sector. 
 
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