VZCZCXYZ0000
OO RUEHWEB

DE RUEHJM #3716/01 2341120
ZNR UUUUU ZZH
O 221120Z AUG 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4371
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS JERUSALEM 003716 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE AND IPA; NSC FOR ABRAMS/DORAN/WATERS 
 
E.O. 12958: N/A 
TAGS: ECON ASEC PREL PGOV KPAL KWBG IS
SUBJECT: PALESTINIAN PRIVATE SECTOR WILL ASSIST USSC 
EFFORTS, PROCLAIMING: "THERE IS NO BUSINESS WITHOUT 
SECURITY" 
 
------- 
Summary 
------- 
 
¶1.  (SBU) U.S. Security Coordinator LTG Keith Dayton met 
August 17 with Palestinian business leaders who acknowledged 
that security and economic revitalization go hand-in-hand, 
made suggestions for more private sector involvement in the 
management of the crossings, and pledged to do their part to 
assist LTG Dayton in his mission.  In a discussion of 
security upgrades for the Karni/al-Mintar crossing, the 
Palestinian participants welcomed the efforts of the USSC, 
but made clear that until a clean and transparent system is 
in place at the crossing, any effort to reduce corruption 
will fail.  LTG Dayton challenged the group to use their 
connections with both public and private sector interests to 
help him in his efforts.  End summary. 
 
¶2.  (SBU) U.S. Security Coordinator LTG Keith Dayton met with 
Palestinian business leaders August 17 to discuss common 
interests shared by the Palestinian private sector and the 
USSC mission.  Private Sector Coordinating Council Chairman 
Nafez Hirbawi opened the meeting by saying that "investment 
requires stability and law enforcement, and the private 
sector has a major role to play." 
 
¶3.  (SBU) LTG Dayton stressed his focus on movement and 
access, and singled out the Karni/al-Mintar crossing as a key 
stumbling block to the revitalization of the Palestinian 
economy.  He explained USSC progress on the Karni Security 
Plan, emphasizing that security at the crossing will remain a 
public sector requirement, and noting that there are several 
ways in which the private sector could get involved, 
including the need for Palestinian companies to lead the 
project. 
 
------------------------------ 
"Cosmetic Reform Insufficient" 
------------------------------ 
 
¶4.  (SBU) Former Minister of National Economy and Chairman of 
the Sinokrot Trade Group Mazen Sinokrot explained how 
corruption at Karni, and the corresponding money flows, is a 
major input for violence in Gaza.  He emphasized that 
cosmetic reform will be insufficient, and called for 
"transparency, quality control, clear policy guidelines, good 
governance, and a system that is accountable to all sides - 
to the Palestinians, to the Israelis, and to the 
international community." 
 
¶5.  (SBU) Sinokrot explained that some members of the group 
are developing a recommendation to PA President Mahmud Abbas 
(Abu Mazen) to establish an institution, led by the private 
sector but reporting to the President, that could lead a new, 
clean crossing authority.  Alternatively, former 
Secretary-General of the PA Cabinet and current Chairman of 
 
SIPDIS 
Portland Trust Samir Huleileh suggested that an independent 
commission of private sector representatives provide 
oversight to the extant General Administration for Crossings 
and Borders (GACB).  A discussion of corruption ensued, with 
participants predicting that, even if the Karni/al-Mintar 
crossing is cleaned up and re-staffed with new personnel and 
Presidential Guard, it would not be immune to future 
corruption unless a new system of rules, procedures, 
oversight, and benchmarks is established. 
 
----------------------------- 
"It's Politics, Not Security" 
----------------------------- 
 
¶6.  (SBU) Huleileh stressed the need for minimum guarantees 
which ensure that Karni/al-Mintar closes for valid security 
reasons only, and not to pressure Hamas, to pressure Abu 
Mazen, or to pressure Palestinians on political issues. 
Sinokrot noted that products coming out of the West Bank move 
quickly through West Bank checkpoints and do not undergo the 
intensive security checks required in Gaza.  Samir Hazboun, 
Chairman of the Bethlehem Chamber of Commerce, told LTG 
Dayton that Bethlehem companies send 140 trucks a day, full 
of stone and marble, through Bethlehem crossings to Israeli 
markets without comprehensive checks and scanners.  "Why is 
security not an issue in the West Bank?," Sinokrot 
challenged.  Answering his own question: "because it's 
politics, not security." 
 
¶7.  (SBU) LTG Dayton explained that while he can do nothing 
about the politics, he seeks to eliminate the security 
 
 
variable.   He challenged the group to take action, stating, 
"when this is all built, when I've done what I can, you're 
going to have to address the rest of the story.  You're going 
to have to address the terrorists and the tunnels.  The 
Israelis are not making this up.  We have ideas for technical 
fixes, but you are going to have to solve your own security 
problem." 
 
¶8.  (SBU) The group pledged to raise the importance of 
management and personnel improvements at Karni/al-Mintar with 
Abbas in a formal letter, and to support LTG Dayton in his 
efforts, in any way they could.  They also suggested that LTG 
Dayton meet with the Israeli private sector, many of whom who 
share their concerns. 
WALLES