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 002781 
 
SIPDIS 
 
DEPT FOR NEA/IPA 
 
E.O. 12958: DECL: 07/13/2016 
TAGS: PREL PARM ETTC PINS IS GOI EXTERNAL ECONOMY AND FINANCE
SUBJECT: ISRAELI MOD DG TOREN ON EXPORT CONTROL REFORM 
 
Classified By: Ambassador Richard H. Jones.  Reasons: 1.4 (b, d). 
 
¶1.  (C) SUMMARY:  MOD DG Jacob ("Kobi") Toren told the 
Ambassador July 11 that the GOI's new Export Controls 
Division took over the processing of new export licensing 
requests this month.  Toren also explained that the 
government hoped to formally submit the Defense Export 
Control Act to the Knesset as early as July 16 and expressed 
confidence that the legislation is supported by a majority in 
the legislature.  Toren said that in the meantime, existing 
law, processes, and enforcement are sufficient to handle 
export controls and any alleged misconduct.  Toren inquired 
about USG efforts to identify humanitarian projects to fund 
in the Palestinian territories that would not benefit Hamas 
and expressed hope that Europe will remain firm in opposing 
the Hamas government.  END SUMMARY. 
 
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MOD'S EXPORT CONTROL DIVISION UP AND RUNNING, 
DEFENSE EXPORT CONTROL ACT NEXT ON THE AGENDA 
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¶2.  (C) The Ambassador began the meeting by asking Toren for 
an update on GOI's export control reform efforts, noting that 
the USG is encouraged by GOI's progress to date.  Toren, who 
was accompanied by Rami Yungman, senior coordinator for 
Defense, Strategic Dialogues and Cooperation, responded that 
the MOD's new Export Controls Division became responsible 
this month for new export licensing requests.  According to 
Toren, MOD officials selected Eliezer (Eli) Pincu to head the 
new office because they wanted someone senior and experienced 
who could work well with both his USG counterparts and his 
own colleagues.  Toren explained that Pincu shortened his 
term as head of the Israeli MOD mission in Paris due to the 
importance the GOI places on the export control issue and 
that Pincu is shuttling back and forth to Paris, but will be 
in the MOD full-time beginning in August.  Toren said that, 
overall, he is optimistic that the new office will perform 
well, but admitted there will be a learning curve and that 
"not everything will be perfect from the outset." 
 
¶3.  (C) Toren moved on to discuss the status of the draft 
Defense Export Control Act.  He explained that while a new 
government and personnel changes across ministries had slowed 
progress, a common understanding now exists on the roles that 
relevant GOI institutions will play in a new export control 
regime.  He said that the draft legislation could be 
submitted formally to the Knesset as soon as July 16, just 
prior to the Knesset's summer recess.  Toren told the 
Ambassador that the government has a clear majority that 
supports the legislation, but it is possible that committees 
will make changes because not everyone is happy with the 
draft.  The Ambassador noted that Israel's reform efforts 
could enhance Israel's export capabilities, as reforms would 
create confidence in the country's export control procedures. 
 Toren replied that "when you shake up a system, you discover 
how you can do things better," but he maintained that 
Israel's system of controls had performed well to this point, 
with misconduct or misuse occurring in much less than one 
percent of all transactions. 
 
¶4.  (C) Toren also stressed that there has been continuity 
between current law and the reforms.  The GOI has enough 
enforcement power through current law to handle 
export-related misconduct, according to Toren, and the MOD 
works closely with industry experts in all phases of the 
process, including production, delivery, on-site 
installation, and maintenance.  He added without elaboration, 
however, that the MOD introduced some changes to existing law 
on dual-use technology.  Finally, Toren clarified for the 
Ambassador that recently crafted export control regulations 
merely codify existing law. 
 
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HUMANITARIAN PROJECTS FOR THE PALESTINIANS 
------------------------------------------ 
 
¶5.  (C) Toren inquired about the status of USG efforts to 
identify humanitarian projects in the Palestinian territories 
that the USG could fund that would not benefit the Hamas 
government.  The Ambassador explained that Secretary Rice 
would review soon a package of projects that includes some 
GOI-preferred options and suggested that Toren's staff 
discuss the issue further with USAID Mission Director Jim 
Bever. 
 
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IDF OPERATIONS IN GAZA 
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¶6.  (C) The Ambassador concluded the meeting by asking Toren 
for his assessment of the situation in Gaza.  Toren explained 
that the more he hears the Palestinians assuring the public 
that captured IDF soldier Gilad Shalit is alive and well and 
will be respected, the more he worries that Shalit is already 
dead.  Toren also explained that the IDF must proceed with 
its operations to uncover tunnels in Gaza.  He thanked the 
Ambassador for the USG's "firm" policy toward Hamas and 
expressed hope that the Europeans will remain strong as well. 
 "If we give legitimacy to a terror government like Hamas, 
then there's nothing to prevent regimes in North Korea, 
Syria, and Iran from also being recognized as legitimate," he 
added. 
 
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JONES