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 002120 
 
SIPDIS 
 
E.O. 12958: DECL: 06/01/2016 
TAGS: ECON EAID ETRD PGOV PREL KWBG KPAL PINR IS ISRAELI PALESTINIAN AFFAIRS HUMANITARIAN AID
SUBJECT: GOI HITS SNAG IN MEDICAL AID DISTRIBUTION; 
PROMISES CROSSING IMPROVEMENT 
 
REF: JERUSALEM 2068 
 
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d). 
 
This cable has been cleared by ConGen Jerusalem. 
 
¶1. (C) Summary:  In a May 31 meeting, COGAT head General 
Yossef Mishlev said that the GOI intends to use NIS 50 
million from frozen clearance revenues to purchase goods in 
Israel and transfer them through NGOs/international 
organizations to Palestinian hospitals or to the central 
medical supply warehouse, which can then pass the stocks to 
the hospitals.  If the NGO option is closed, he said that 
Minister of Defense Peretz and FM Livni would have to approve 
any proposal which uses PA President Mahmud Abbas as the 
channel for delivering assistance.  Mishlev promised to 
explore re-establishment of a special lane for USAID 
employees at Erez in order to avoid problems during security 
checks as well as look into the possibility of increasing 
exports at Karni.  Mishlev said that he has spoken to the 
Israeli Airports Authority (IAA), which operates the 
terminal, about returning an additional ten empty containers 
a day through Karni.  Regarding complaints by American 
distributors about Karni,s reservation system, Mishlev 
suggested that he would join any discussion on a more 
transparent system with IAA officials and the Embassy.  He 
acknowledged the economic need to expand the fishing area off 
the Gaza coast and promised to discuss the issue with the 
Naval commander.  In separate discussions with General Baruch 
Spiegel, he expressed an interest in finding a private sector 
mechanism for delivering medical assistance to the 
Palestinians that could be placed under an international 
umbrella.  Spiegel also raised concerns about the lack of 
equipment maintenance at Rafah, which he said could lead to a 
deterioration of security at the crossing if not rectified. 
End summary. 
 
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Humanitarian Medical Assistance 
------------------------------- 
 
¶2.  (SBU) COGAT head General Yossef Mishlev on May 31 
discussed with EconCouns and USAID Deputy Mission Director 
the issue of using VAT and customs receipt revenues owed the 
PA but currently frozen by the GOI to purchase medicines and 
medical equipment for the Palestinians.  Mishlev claimed that 
this idea had been his initiative.  Mishlev said the GOI has 
approved using NIS 50 million to purchase goods in Israel and 
transfer them through NGOs/international organizations to the 
Palestinian hospitals or to the central medical supply 
warehouse, which can then pass the stocks to the hospitals. 
No money would be transferred, no salaries would be paid, and 
the GOI would not negotiate with Hamas.  The medicine would 
not include any items that are in short supply in Israel, he 
said, but the GOI is still awaiting a needs assessment from 
Palestinian hospitals and their ideas on how best to make the 
transfer.  Mishlev said that if a mechanism can be found that 
does not cross any red lines, it can be implemented 
immediately. 
 
¶3.  (C) USAID Deputy Mission Director said he had consulted 
with WHO, CARE, and UN representatives who told him that they 
do not want to be involved in the plan.  He said they view 
the NIS 50 million as Palestinian funds and not funds 
available for GOI usage.  However, he said, the NGOs would 
probably be supportive if PA President Mahmud Abbas blessed 
the plan. The Deputy Mission Director said that Abbas wants a 
direct agreement between his office and COGAT regarding the 
medical assistance and wants the items to be purchased from 
Palestinian sources, which would be cheaper than Israeli 
products.  Mishlev said that it was bad news that CARE and 
the other organizations did not want to be involved.  He said 
that whether or not to deal with Abbas is a political issue 
that would have to be decided by Minister of Defense Peretz 
and FM Livni.  He speculated that purchasing goods in the 
territories could lead to corruption and would not guarantee 
that the assistance reached its intended destination. 
 
¶4.  (C) At a separate meeting on May 31, Brig. Gen. (res.) 
Baruch Spiegel told EconCouns that he will attend a 
conference hosted by the Aspen Institute in Washington that 
will discuss alternative mechanisms for delivering assistance 
to the Palestinians while bypassing Hamas.  Spiegel said that 
this type of a discussion is useful, because the central 
medicine warehouse is under the PA Ministry of Health, which 
makes giving medical supplies to it politically complicated. 
He said that he is particularly interested in finding a 
private sector mechanism that could be placed under an 
international umbrella. 
 
--------------------------- 
Harassment of AID Employees 
--------------------------- 
 
¶5.  (C) EconCouns requested Mishlev,s intervention in 
situations where Palestinian USAID employees resident in Gaza 
have been subject to intense scrutiny, bordering on 
harassment, when they cross into Israel at Erez.  In 
addition, expatriate employees have come under extra scrutiny 
at Ben Gurion Airport.  USAID Deputy Director suggested 
giving the GOI a heads up when contractors are due to enter 
the country so their entry can be facilitated and finding a 
way to smooth the crossing of Palestinians with USAID 
employee IDs.  Mishlev acknowledged increased security at 
Erez.  He said it might be possible to add a special lane at 
the crossing for the employees. 
 
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Karni Exports 
------------- 
 
¶6.  (C) Mishlev said that Karni crossing is now open for 
two-way traffic.  He noted that some of the cargo transfer 
cells had been closed due to the security situation, but that 
he had spoken with security officials on May 30 and asked 
them to find a way so that exports from Gaza into Israel 
could be increased.  Deputy Mission Director noted that there 
is still a problem of a backlog of empty containers in Gaza. 
He urged that containers be sent back regularly, instead of 
sporadically, as is the case now.  Mishlev said he has spoken 
with the Israeli Airport Authority (IAA), which operates the 
Karni terminal, about the problem and the IAA has agreed to 
allow an extra 10 empty containers to cross daily.  He 
offered that using palettes instead of containers to 
transport some of the humanitarian assistance would also cut 
down on the number of empty containers in Gaza. (Note: the 
USG has provided scanners and other security equipment at 
Karni specifically in order to move away from costly and 
time-consuming handling of palletized cargoes. End note.) 
 
---------------------------------- 
Karni Reservation System Complaint 
---------------------------------- 
 
¶7.  (C) EconCouns raised complaints by American business 
distributors about Karni,s reservation system.  He said they 
have called the system "chaotic" and criticized the fact that 
many of their cargoes have waited three-four months or more 
to cross, while other companies are able to transfer two 
loads a day with the same truck.  He emphasized the need for 
a transparent system, such as a website where reservations 
can be obtained and queues monitored.  EconCouns said it 
would be easier for businessmen to plan with such a system, 
even when security alerts close the terminal.  Mishlev said 
that he had heard of problems from Israeli business leader 
Shraga Brosh and had tried to correct them.  Mishlev agreed 
that corruption is the root of the problem, with companies 
having to pay NIS 9,000 or more to guarantee that their 
shipments can cross.  (Note: Embassy contacts among the 
Palestinian business community report that payments to 
guarantee crossing Karni can reach NIS 12,000 or more and 
have presented written evidence thereof.  End note.)  He 
suggested that he would join U.S. officials in a meeting with 
IAA officials to discuss USG ideas, including fixes to the 
reservation system. 
 
 
------------ 
Gaza Fishing 
------------ 
 
¶8. (C) EconCouns raised the issue of the depleting fish 
stocks off the Gaza coast (reftel).  He said it is important 
to extend the fishing zone past the current reportedly 6-mile 
limit to avoid a total depletion of the fish stocks within 
the permitted area.  Mishlev said that Gaza fishermen are, by 
current regulation, allowed to fish within a 10-mile zone, 
but he admitted there is a problem with overfishing in the 
restricted area.  He said that he has been in contact with 
the ICRC on the issue and agreed there is a need to expand 
the current fishing area.  Mishlev promised to talk to the 
naval commander about expanding the range.  He said that 
security concerns will be a major factor in the decision. 
 
------------------------------- 
Permits for Palestinian Workers 
------------------------------- 
 
¶9.  (C) Mishlev said that a total of 11,000 permits have been 
issued for West Bank workers to enter Israel, with another 
4,000 permits issued for Palestinian businessmen and 1,500 
for workers in Jerusalem.  He said he intends to speak with 
defMin Peretz about further increasing the number of permits 
for businessmen and workers.  Mishlev said that he had 
recommended to various GOI officials that permits be issued 
for Gazan workers but his idea had been rejected.  He said he 
had succeeded, however, in getting 250 permits approved for 
Gaza businessmen. 
 
-------------- 
Rafah Scanners 
-------------- 
 
¶10.  (C) Brig. Gen. Spiegel separately raised concerns about 
the equipment maintenance at Rafah.  He said USAID had been 
responsible for bringing the crossing up to international 
security standards, but its involvement ended when Hamas had 
come to power. Spiegel noted that one of the two scanners has 
been broken for three weeks and asserted that when the other 
one breaks down, the crossing will have to close.  If any 
other equipment breaks down, security would deteriorate and 
that would be a problem, he said. (Note: Embassy officers, 
along with General Dayton, again discussed this issue with 
Spiegel later in the day and are working on options to solve 
the problem.  End note.) 
 
 
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