VZCZCXRO7985
OO RUEHROV
DE RUEHJM #0585 0871601
ZNR UUUUU ZZH
O 281601Z MAR 07 ZDK
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7094
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS JERUSALEM 000585 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
WILLIAMS/SHAMPAINE/STEINGER; NSC FOR ABRAMS/DORAN/WATERS; 
TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PREL KWBG
SUBJECT: STRIKING GAZANS AGAIN CLOSE KARNI/AL-MINTAR 
CROSSING; APPEAL TO THE US FOR HELP 
 
REF: JERUSALEM 529 
 
¶1.  (SBU) Palestinian truckers and merchants closed the Gaza 
side of Karni/al-Mintar crossing for several hours March 26 
to protest continued restrictions on throughput at the 
crossing, particularly for exports.  The strikers displayed 
banners calling on Secretary Rice to reactivate the AMA 
agreement and to "honor her commitment" to facilitate exports 
of Palestinian products from the Rafah crossing into Egypt. 
They also demanded the closure of the "monopoly coordination 
office", an end to "abusive practices" at commercial 
crossings and the opening of a commerical terminal at Erez 
crossing in northern Gaza.  The crossing was closed by a 
similar strike March 11-12 (see reftel). 
 
¶2.  (SBU) Karni/al-Mintar has remained opened on most 
scheduled days of operaton since November 2006, after a 
cease-fire agreement significantly reduced the number of 
Qassam rockets fired against Israel.  While the flow of goods 
has increased in both directions, the level of Palestinian 
exports remains far below estimated demand.  According to 
PalTrade, an average of about 50 truckloads per day have been 
exported in recent weeks, up from fewer than 30 a day for 
most of 2006.  The World Bank estimates that a minimum of 150 
truckloads of exports per day are needed to revitalize the 
Gaza economy. 
 
¶3.  (SBU) With agricultural production season just past its 
peak, recent exports from Gaza have been agricultural 
products, such as flowers, strawberries, and vegetables, 
purchased by Israel marketing companies for re-export to 
European and other foreign markets.  Although the export flow 
is significantly improved over the same period last year, 
when the crossing was closed repeatedly and for extended 
periods, Gaza-based agribusinesses continue to complain that 
demand is not being met.  According to PalTrade, the number 
of cut flowers allowed through the crossing between November 
2006 and February 2007 constitutes 27 percent of production 
normally available for export.  The amount of strawberries 
exported during the same period equaled about 63 percent. 
 
¶4.  (SBU) Comment:  Palestinian frustrations with the 
corruption, restricted throughput, and a general lack of 
transparency at Karni/al-Mintar crossing will continue to 
fester until significant changes are made to crossing 
operations. 
 
WALLES