VZCZCXRO7416
OO RUEHDE
DE RUEHJM #0529/01 0371734
ZNY CCCCC ZZH
O 061734Z FEB 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0160
RUEHDE/AMCONSUL DUBAI
INFO RUEHZM/GULF COOPERATION  IMMEDIATE
RUEHAM/AMEMBASSY AMMAN IMMEDIATE 6212
RUEHLB/AMEMBASSY BEIRUT IMMEDIATE 4397
RUEHEG/AMEMBASSY CAIRO IMMEDIATE 3114
RUEHDM/AMEMBASSY DAMASCUS IMMEDIATE 8009
RUEHLO/AMEMBASSY LONDON IMMEDIATE 2879
RUEHMO/AMEMBASSY MOSCOW IMMEDIATE 0479
RUEHNY/AMEMBASSY OSLO IMMEDIATE 1158
RUEHOT/AMEMBASSY OTTAWA IMMEDIATE 0319
RUEHKO/AMEMBASSY TOKYO IMMEDIATE 0637
RUEHTU/AMEMBASSY TUNIS IMMEDIATE 5874
RUEHVI/AMEMBASSY VIENNA IMMEDIATE 0047
RUCNDT/USMISSION USUN NEW YORK IMMEDIATE 1190
RUEHBS/USEU BRUSSELS IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000529 
 
SIPDIS 
 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/WATERS/LOGERFO; 
TREASURY FOR NUGENT/ADKINS 
 
E.O. 12958: DECL: 02/06/2016 
TAGS: EFIN KBIO KWBG IS
SUBJECT: PA DEPUTY FINANCE MINISTER CONFIRMS ISRAEL 
CLEARANCE REVENUE TRANSFER, STILL WAITING ON GULF FUNDING 
PLEDGES 
 
 
Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d). 
 
¶1.  (C)  Summary: Palestinian Authority Deputy Finance 
Minister Jihad al-Wazir confirmed that the Israeli clearance 
revenue transfer would appear in the PA's bank account 
February 7.  He asked for USG assistance in obtaining letters 
from the Saudi and Qatari government by February 7 that noted 
that transfers of budget support from each of those 
governments were in process.  Al-Wazir confirmed that PA 
President Abbas was on his way to Kuwait to seek USD 100 
million in assistance.  Al-Wazir voiced concern that Gulf 
governments would delay transfers until a Hamas delegation 
traveling in the region had visited.  He noted how 
politically difficult that would be for President Abbas if 
transfers were delayed until Hamas could claim credit for 
them.  End summary. 
 
Israel transfers clearance revenues 
----------------------------------- 
 
¶2.  (C) Al-Wazir confirmed that the Israeli government had 
transferred the USD 54 M in clearance revenue it had 
collected on behalf of the PA.  He said these funds would 
appear in the PA's single treasury account in the morning of 
February 7.  He stressed, however, that those funds would not 
cover the PA's January payroll and other emergency expenses, 
so he was counting on receiving transfers from Gulf states. 
 
Increased Saudi transfer 
still awaiting King's approval 
------------------------------ 
 
¶3.  (C) Al-Wazir confirmed this afternoon that the Saudi 
transfer had still not arrived in the PA's account and that 
he had not received any indication that it was being 
processed.  Al-Wazir did note that the PA had asked Saudi 
Arabia for USD 40 M, an increase from the USD 20 M discussed 
last week.  Al-Wazir understood that this larger transfer had 
to be approved by the King.  Al-Wazir asked for USG 
assistance in obtaining a letter from the Saudi government 
stating that funds were in the process of being transferred. 
Al-Wazir said he would use such a letter to obtain an advance 
from Arab Bank.  According to earlier reports from al-Wazir, 
Arab Bank tried to call in a number of loans extended to the 
PA.  February 7 is the final day that al-Wazir can get the 
financing lined up in order to pay PA salaries on Saturday, 
February 11, given that it takes 4 days for Arab Bank to 
process direct deposit salary payments.  (Note: Al-Wazir 
believes that February 11 is the last day that the PA can pay 
January salaries before the public loses confidence in the PA 
and violence breaks out on the street.  PA salaries were due 
to be paid February 4.  End note.) 
 
Qatari transfer also outstanding 
-------------------------------- 
 
¶4.  (C) Al-Wazir also asked for USG assistance in obtaining a 
similar letter from the Qatari government by February 7 since 
the Qatari transfer had not yet arrived.  Al-Wazir noted that 
a Hamas delegation, currently in Cairo, is expected to be in 
Doha within the next day or so.  He said that it would be a 
bad sign for President Abbas if the GOQ held the transfer 
until the Hamas delegation arrived in Doha since President 
Abbas had spoken with the Qatari Foreign Minister last week 
who had confirmed that the transfer was in the works. 
 
Abbas headed to Kuwait seeking USD 100 M; 
understand Emiratis not considering a transfer 
--------------------------------------------- - 
 
¶5.  (C) Al-Wazir said that President Abbas was en route to 
 
JERUSALEM 00000529  002 OF 002 
 
 
Jordan and was expected to arrive in Kuwait the evening of 
February 6.  He would ask the Government of Kuwait (GOK) to 
make good on its USD 141 M in Arab summit pledges to the PA 
and would urge the GOK to quickly transfer at least USD 100 
¶M.   Al-Wazir said that Abbas had no plans to go on to the 
Emirates since the PA had not received any indications that 
the Emiratis would be forthcoming with a transfer. 
 
Hamas says it can secure funding 
for PA through other channels 
-------------------------------- 
 
¶6.  (C) Al-Wazir voiced concern that a Hamas delegation 
currently in Cairo would soon head to the Gulf seeking 
funding for the PA.  Al-Wazir stressed that it would be 
politically difficult for President Abbas if Gulf states 
decided to wait on transferring funds until that delegation 
had visited.  New PLC member Mohammed Abu Taeir was quoted by 
Arabic daily al-Quds February 6 as saying that Hamas could 
secure funding for the Palestinian people through other 
channels and PA personnel should not be concerned about their 
salaries under a Hamas-led government.  He also referred to a 
USD 100 million pledge from an unnamed Arab donor. 
WALLES