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 002570 
 
SIPDIS 
 
E.O. 12958: DECL: 06/27/2016 
TAGS: PREL PGOV KWBG EFIN IS GOI EXTERNAL ISRAELI PALESTINIAN AFFAIRS COUNTERTERRORISM
SUBJECT: RAFAH:  SPIEGEL AND PISTOLESE REPORT ON THE 
PRESIDENTIAL GUARD EFFECTIVENESS AND MONEY TRANSFERS 
 
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d) 
 
¶1.  (C) Summary:  Lt. Gen. Pietro Pistolese, head of the 
European Union Border Assistance Mission (EU-BAM), and Brig. 
Gen. (ret.) Baruch Spiegel, advisor in the Ministry of 
Defense (MOD), on June 23 gave the Ambassador a status update 
of the Rafah crossing in the Gaza Strip.  According to 
Pistolese, the crossing was closed June 21, open for four 
hours on June 22, and closed again on June 23 because of 
continuing security threats.  He said that the crossing was 
open on June 22 for a few hours after security forces from 
the Palestinians' Presidential Guard (PG) were deployed to 
the crossing.  Pistolese and Spiegel praised the usefulness 
of the PG at Rafah, and said that it could be deployed to 
other crossings in the future.  Pistolese complained to the 
Ambassador about the large quantities of cash that travelers 
are carrying from Egypt to Gaza through Rafah.  He explained 
that neither the Palestinians nor the Egyptians have a law 
preventing undeclared cash transfers of funds over $10,000, 
the international standard, and said that adopting the 
customs protocol would help curb future large cash transfers. 
 He conceded to the Ambassador that the customs protocol 
would not prevent the transfer of money to Gaza, but said 
that it would at least help track the origin more accurately, 
which would have a dampening effect.  The Ambassador asked 
whether money in large quantities could be treated as a 
commercial "good," which should go through Kerem Shalom 
crossing instead of Rafah.  Spiegel said that this would 
require agreement and coordination with the Egyptians, and 
that they are unlikely to coordinate until the Israelis and 
Palestinians have an agreement on the customs protocol.  He 
reported that the GOI is still deciding whether to respond to 
the Ambassador's letter asking it to approve the protocol. 
Pistolese commented that the EU-BAM's mandate is expiring in 
five months, but said that it could be extended.  He 
recommended, however, that the parties agree to some changes 
on the Rafah crossing for the EU-BAM to extend, such as 
establishing a liaison officer on the Egyptian side of the 
border.  Spiegel recommended a "security hotline" for Israel, 
Egypt, the PA, the EU-BAM, and the U.S., to deal with threats 
in real time.  It could start as a pilot project in Rafah and 
Kerem Shalom and be extended to other crossings in the 
future, he said.  End summary. 
 
------------------------------------ 
Rafah Closed, President Guard Useful 
------------------------------------ 
 
¶2.  (C) Lt. Gen. Pietro Pistolese, head of the European Union 
Border Assistance Mission (EU-BAM), and Brig. Gen. (ret.) 
Baruch Spiegel, advisor in the Ministry of Defense (MOD), 
told the Ambassador the morning of June 23 that Rafah 
crossing was closed on Wednesday, June 21, and re-opened on 
June 22 for four hours in the morning, at which point 1,517 
people crossed the border.  Pistolese said that the crossing 
was closed again the afternoon of June 22 and was closed at 
the time of the meeting on June 23 because of continuing 
security threats.  He said that 800 people were waiting to 
cross on the Egyptian side of the border.  Spiegel mentioned 
that Rafah would likely not be opened very quickly, but did 
not elaborate.  (Afterward, he confided to the Ambassador 
that Israel had a lead, which it hoped could resolve the 
threat -- the IDF subsequently detained two Hamas members in 
Gaza on June 24.)  Pistolese added that he appreciated the 
GOI's advance warning on June 23, unlike on June 21, that the 
crossing would not be open because it saved his staff travel 
time from Ashkelon.  The Ambassador asked about the GOI 
alert, and Spiegel responded that it is even higher than 
previous threats, and that the decision to open Rafah was 
only taken when the GOI knew that serious security measures 
would be implemented.  Pistolese showed the Ambassador a 
diagram of the crossing, detailing the deployment of 
approximately 20 Palestinian President Guard (PG) security 
forces around Kerem Shalom on the Palestinian side and along 
the Philadelphi Road.  The Ambassador asked whether the road 
was under threat or just the terminal, and Pistolese replied 
that the Israeli soldiers at the crossing were under threat, 
but not the EU-BAM per se or the Palestinians. 
 
¶3.  (C) Spiegel discussed the PG forces, and said that the 
Palestinian Authority (PA) should start by placing them in 
Rafah permanently, and then they could be deployed at other 
crossings as well.  The Ambassador asked whether this could 
include a future seaport, and Spiegel agreed, saying that the 
PG could serve as security at all the crossings in the 
future.  The Ambassador noted that USSC Lt. Gen. Dayton wants 
to work with the PG to train them, and Pistolese added that 
PA President Mahmud Abbas is also interested in widening the 
role of the PG and adding more troops at Rafah.  The 
Ambassador said that perhaps the PG could even be deployed at 
Erez at some point, and by securing its environs, discourage 
attempts by militants to launch Qassam rockets at Sderot. 
Spiegel agreed, and said that if the GOI decides to open Erez 
for Palestinian workers to go to the Erez Industrial Zone, 
the PG would be very useful at the crossing and could also 
serve as a deterrent against Qassams.  The Ambassador floated 
the idea of establishing a crisis management mechanism to 
allow Abbas to assert himself as a protector of Palestinians 
while helping to stop Qassam attacks.  Spiegel considered 
this a good idea, admitting that there are "problems because 
we don't coordinate with the Palestinians."  He noted the 
success of the short PG deployment to Rafah on the morning of 
June 22, and said that it worked well with the EU-BAM as a 
third party.  Pistolese said the EU-BAM had no problem 
serving as a third party, but insisted that the PG forces had 
to be paid, which they had not been for four months, while 
forces under Hamas had been.  He also reported that 
coordination with the Egyptians is problematic because they 
refuse to receive EU-BAM liaison officers or send any of 
their own to the Palestinian side. 
 
-------------------------------------- 
Large Cash Transfers Getting into Gaza 
-------------------------------------- 
 
¶4.  (C) Pistolese highlighted the problem of large amounts of 
money being carried by individuals from Egypt to the Gaza 
Strip through Rafah.  He cited as an example the PA foreign 
minister recently crossing into Gaza with $20 million in 
cash.  He said that he discussed this issue with PA Chief 
Negotiator Saeb Erekat on June 21, after having written him a 
letter of complaint, but said that ultimately the PA does not 
have a law requiring the declaration of a transfer of cash 
over $10,000, as is the case under international standards. 
He claimed that Egypt also does not have a law preventing 
transfers of cash through its territory, and that both the 
Palestinians and the Egyptians should have tighter 
legislation to prevent the transfer of money.  The Ambassador 
asked whether declaring the funds would stop the transfer of 
funds, and Pistolese conceded that it would not, but said 
that it would help determine the origin of the money and 
track the amounts entering Gaza more accurately, which would 
discourage some transfers.  Pistolese declared that if the 
situation did not stop, the EU-BAM would end its mission to 
Rafah. 
 
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Need the Customs Protocol 
------------------------- 
 
¶5.  (C) The Ambassador asked whether money in large 
quantities could not just be directed through Kerem Shalom 
crossing instead of Rafah if it arrives at the crossing in 
what could be considered commercial quantities.  Pistolese 
said that this is a possibility, but that Kerem Shalom would 
have to be open for imports in this case.  According to 
Pistolese, Rafah and Kerem Shalom, along with all agreements 
and tools created to deal with the movement of goods and 
people at these crossings, are connected and should work as 
one system, so in this case the customs protocol could 
regulate the transfer of funds.  The Ambassador noted that 
the Palestinians have already accepted the customs protocol, 
and asked whether this meant it is in effect, or if it has to 
be a bilateral agreement between the Palestinians and the 
GOI.  Spiegel commented that Kerem Shalom is open for 
humanitarian imports from Egypt, although it is closed at the 
moment because of a security alert.  He said that the 
crossing functions well, but to open it for commercial goods 
would require agreement and cooperation with the Egyptians, 
and that the Egyptians would likely wait until the 
Palestinians and Israelis have an agreement on the customs 
protocol before making a decision. 
 
¶6.  (C) Spiegel opined that Kerem Shalom can be an important 
element to improve the humanitarian situation in Gaza.  He 
agreed with Pistolese that Kerem Shalom and Rafah work 
together as a system, but said that the decision on the 
customs agreement is an internal GOI issue that is being 
decided by the political echelon in the government.  Weighing 
in on the problem of money transfers into Gaza, Spiegel 
speculated that it is also problematic because the money is 
going to Hamas, and added that the fund transfers undermine 
the international community's effort to put pressure on the 
group.  This is a problem to discuss at the Security Working 
Group (SWG), he said, and mentioned that the groundwork needs 
to be prepared for the meeting. 
 
------------------------ 
EU-BAM Mandate Ends Soon 
------------------------ 
 
¶7.  (C) Pistolese pointed out that the EU-BAM's mandate ends 
in five months because it was meant to monitor the crossing 
for only a year, unless it is extended.  He said that the 
EU-BAM could easily be extended, but that there should be 
some changes that all parties involved should consider.  He 
noted the customs protocol as an example, and said that all 
parties, but particularly Israel, should agree to the points 
and should sign a document to give it weight.  He suggested 
that the Egyptians be included, but if they are not, that at 
the very least there be a separate agreement with the GOE to 
establish the presence of a liaison at Rafah.  Spiegel added 
that all the parties could re-evaluate and take the "lessons 
learned" to prepare a "newish" agreement on the functioning 
of the crossing.  He suggested that a "security hotline" be 
established to deal with threats in real time.  The 
Ambassador asked whether he meant that it would be a five-way 
information sharing project, and Spiegel said that if there 
is an alert, all the parties should be involved, including 
the U.S. and the USSC.  According to Spiegel, Rafah and Kerem 
Shalom could be the pilot project, and the security hotline 
could subsequently be extended to other crossings, 
complementing the Ambassador's suggestion of a crisis 
management mechanism.  Spiegel acknowledged that he has not 
vetted his idea within the MOD, but said that he would take 
it to Defense Minister Amir Peretz soon, and would coordinate 
with Shin Bet.  The Ambassador noted that this is a good 
opportunity for confidence-building, and Spiegel agreed, 
saying that if the PG forces are at Karni crossing, they can 
coordinate with the crossing's manager, Yoni Dotan. 
 
------------------------------ 
Security Working Group Meeting 
------------------------------ 
 
¶8.  (C) Referring to preparations for the SWG meeting, 
Spiegel reported that MOD Pol-Mil Director Amos Gilad would 
be attending as the GOI representative.  He said that it is 
very important for the Palestinians to be present, and asked 
Pistolese who would be representing them.  Pistolese replied 
that it would be the head of the PG, Mahmud Damra, and the 
Ambassador mentioned that he understood the GOI may have 
questions about his connections to terrorist activities in 
the past.  Spiegel said that Lt. Gen. Dayton would be meeting 
with Shin Bet Director Yuval Diskin, and that if Damra is 
acceptable, it is better that a security person attend the 
meeting than Erekat or Nazmi Muhanna, head of crossings on 
the Palestinian side, because they "don't get security." 
Spiegel said that the GOI would investigate Damra, and that 
having someone on Erekat's level is not good enough because 
the GOI needs a connection to someone on the ground. 
 
¶9.  (C) Spiegel also briefly mentioned that the MOD decided 
the previous day to resume exports of empty containers at 
Karni on Sunday, June 25.  He said that the scanners remained 
a weak link, however, because they constantly need 
maintenance and spare parts. 
 
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