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 02 TEL AVIV 002225 
 
SIPDIS 
 
E.O. 12958: DECL: 06/07/2016 
TAGS: PREL PTER PINR KWBG KPAL EU IR IS ISRAELI PALESTINIAN AFFAIRS GOI EXTERNAL
SUBJECT: PERETZ SAYS HE WILL TAKE RISKS TO HELP THE 
PALESTINIANS 
 
 
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b,d). 
 
¶1.  (C) Summary: Defense Minister Amir Peretz told A/S Welch 
June 7 that he is willing to take maximum possible risks 
allowable in light of security demands to ease the pressure 
on the Palestinian people.  He noted his efforts to keep the 
Karni crossing open -- as it is currently -- in both 
directions, unless security threats dictate otherwise.  He 
stressed that he is in that part of the coalition that 
supports exhausting efforts to negotiate with a Palestinian 
partner before resorting to unilateral measures, but added 
that unilateral measures could serve to spur positive 
Palestinian actions as well.  He underlined the need to 
strengthen Palestinian Authority President Mahmud Abbas.  A/S 
Welch highlighted the need to prevent a humanitarian crisis 
in the PA to ensure continued EU and other international 
solidarity in isolating Hamas and maintaining international 
focus on Hamas accepting the Quartet's three conditions.  A/S 
Welch stressed the Secretary's strong interest that the GOI 
allow the crossings to function in as liberal a manner as 
possible in light of security conditions -- especially with 
regard to exports.  He stressed the U.S. interest that the 
GOI explore ways to respect the dignity of the Palestinian 
people.  He and the Ambassador raised concrete examples of 
Israeli security restrictions that humiliate and negatively 
impact the lives of Palestinians.  DefMin Peretz and A/S 
Welch also discussed the threats presented by Iran and 
Hizballah and the need for continued U.S.-Israel cooperation 
on these matters.  End Summary. 
 
¶2.  (C) A/S Welch was accompanied by Ambassador Jones, U.S. 
Security Coordinator LTG Dayton, DAO CDR Williamson, NSC 
LoGerfo, and Embassy notetaker Bernstein-Zabza.  Peretz was 
accompanied by MOD advisor Amos Gilad, Military Secretary to 
DefMin BG Eitan Dangott, MOD advisor Schmuel Limone 
(interpreter), MFA Deputy Director General North America 
Division Yoram Ben Ze'ev, MFA No. America Division Iris 
Sapir, MOD advisor Haggai Alon, and Peretz's personal advisor 
Oriella Ben-Zvi.  Peretz spoke Hebrew throughout the meeting, 
though in a one-on-one meeting he spoke comfortably in 
English with no interpretation. 
 
---------------- 
Toward a Partner 
---------------- 
 
¶3.  (C) Peretz began the June 7 meeting with A/S Welch by 
noting that he had come straight from his hometown of Sderot, 
where he continues to reside and drew attention to the 
continuing rocket attacks there from Gaza.  Turning to 
Israeli-Palestinian relations, Peretz underlined that he 
belongs to that part of the coalition -- the Labor Party -- 
that insists on exhausting efforts to identify a Palestinian 
negotiating partner before resorting to unilateral measures. 
He noted, however, that the entire coalition, including 
Labor, had agreed to PM Olmert's outline for government 
action.  He added that unilateral steps could act as a 
catalyst to spur the Palestinians to "abide by their 
commitments" and cooperate with Israel.  Peretz said that PA 
President Abbas should be strengthened and that he does not 
want to judge Abbas's strength by Abbas's past actions, but 
rather by what he does in the future.  Peretz stressed that 
his focus is on fighting terrorism while not harming the 
Palestinian people. 
 
---------------------------- 
Peretz Willing to Take Risks 
---------------------------- 
 
¶4.  (C) A/S Welch highlighted PM Olmert's successful visit to 
Washington and the importance of the continued cooperation 
between the U.S. and Israel on regional security matters, 
including with USSC LTG Dayton.  He noted the importance of 
Peretz's role in the GOI's sustained efforts to test whether 
an effective Palestinian partner exists.  A/S Welch stressed 
that EU and international support in isolating Hamas can be 
sustained by ensuring that Hamas cannot blame Israel or the 
U.S. for a humanitarian crisis in the West Bank and Gaza. 
The focus must be on Hamas, he stressed, and on its choice of 
whether or not to adhere to the three Quartet conditions. 
A/S Welch noted that the U.S. and the EU are close to 
agreeing on a funding mechanism for assisting the Palestinian 
people -- not the PA -- and expressed the hope that the 
mechanism could be widely used, including by Israel and Arab 
countries.  He said that the GOI also has within its control 
the ability to ease the plight of the Palestinian people 
without compromising its security.  He added that he hopes 
that the GOI will also consider the USG's advice in this 
regard. 
 
¶5.  (C) The Secretary, Welch underlined, is very interested 
in continued efforts to implement the Agreement on Movement 
and Access, and in ensuring that the GOI allow the crossings 
to operate in as liberal a manner as possible, especially 
with regard to exports.  He noted that the two main 
complaints that the USG hears from the EU are about the GOI's 
freeze on PA tax revenues and about crossing controls that 
are ruining the PA economy.  A/S Welch also stressed the need 
for the GOI to consider ways to afford the Palestinian people 
dignity and respect.  As an example of a problem in this 
regard, A/S Welch noted that he had to ensure that Abbas's 
advisor Yasir Abed Rabbo ride in USG vehicles in order to 
reach Jerusalem for a dinner with Welch June 6 because of the 
permit problems that Abed Rabbo, as a West Bank resident, had 
encountered.  (Note: Peretz appeared a little rattled about 
the report of this incident by Welch.  He turned to Dangot 
and exchanged a few words in Hebrew.  End note.)  The 
Ambassador raised his concern that the average Palestinian 
also be treated with greater respect by Israel.  He said it 
has come to his attention that Palestinian students from the 
West Bank and Gaza are no longer allowed to study at Israeli 
educational institutions.  He emphasized that by barring 
Palestinian students, Israel could be squandering the 
opportunity to cultivate natural allies among Palestinian 
youth. 
 
¶6.  (C) LTG Dayton stressed his appreciation for the close 
cooperation he has experienced with the GOI.  He said that 
significant movement has taken place on the Palestinian side 
with regard to the border crossings.  He said that he will 
soon be approaching the GOI with some new ideas regarding the 
management of the crossings that will likely entail more risk 
for the GOI.  Peretz expressed appreciation for the 
productive meeting on May 21 that he had with LTG Dayton. 
 
¶7.  (C) Peretz underlined the actions he has been taking to 
ease the situation of the Palestinians, which include 
allowing more Palestinian laborers to enter and work in 
Israel and opening the Karni crossing in both directions. 
Peretz agreed on the importance of addressing the "human 
element" of the Palestinian situation, including nurturing 
cooperation between the Israeli and Palestinian peoples.  He 
said he would examine the issues and problems raised during 
the meeting "in a deep manner" and try to make changes.  He 
stressed that by alleviating pressure on the Palestinian 
people, he is undermining the terrorists' influence on them. 
By keeping the crossings open, Peretz added, he is easing 
pressure on the Palestinians.  Peretz underlined that he is 
willing to take the maximum possible risks allowable -- in 
light of security concerns -- to ease the living conditions 
of the Palestinians.  Saying that he was speaking 
confidentially, Peretz said that he had recently kept 
 
SIPDIS 
crossings around the Jerusalem envelop open despite security 
threats of a suicide bomber.  He noted that he must strike a 
daily balance. 
 
---------------- 
Regional Threats 
---------------- 
 
¶8.  (C) Turning to regional issues, Peretz noted that 
although the northern border is now "quiet," he remains on 
guard about Hizballah threats and continues to keep his "hand 
on the pulse" of the situation.  He asserted that Iran is 
inspiring the events on that border.  Regarding Sheba Farms, 
Peretz said that he is aware of the situation, but is now in 
a wait-and-see mode.  On Iran, Peretz said that the USG and 
GOI positions are similar -- to prevent Iran from 
manufacturing uranium in its early stages.  A/S Welch 
highlighted the valuable intelligence exchanges between the 
U.S. and Israel on these regional issues.  He commented that 
he does not see a difference in the GOI and USG views on 
Hizballah. 
 
¶9. (C) A/S Welch cleared this cable. 
 
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