VZCZCXRO0870
OO RUEHROV
DE RUEHJM #0838 1300738
ZNR UUUUU ZZH
O 100738Z MAY 07
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7474
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS JERUSALEM 000838 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
WILLIAMS/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/DORAN/WATERS; 
TREASURY FOR NUGENT/HIRSON 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PREL KWBG IS
SUBJECT: TULKARM BUSINESSES TURN TO ISRAELI SETTLERS TO 
TRANSPORT GOODS 
 
REF: JERUSALEM 607 
 
¶1.  (SBU) Summary:  Palestinian businessmen in Tulkarm 
complain that delays, road conditions, and the Israeli 
requirement to palletize all cargo processed through the 
Tulkarm/Sha'ar Efraim crossing have limited exports at the 
crossing to only 40 trucks daily.  Some businesses have 
turned to Israeli settlers with access to Israeli-plated 
trucks to transport their goods directly to Israel, despite 
the higher costs (up to 30 percent of profits).  The poor 
condition of road approaching the crossing has driven up 
maintenance costs by as much as 50 percent, but Israeli 
authorities have denied the Tulkarm municipality permission 
to repave the Area C road, according to local businessmen. 
End Summary. 
 
¶2.  (SBU) USAID's contractors working on the Palestinian 
Integrated Trade Arrangement (PITA) project traveled to 
Tulkarm on April 12 to meet with Waleed Khatep, the manager 
of a meat and poultry company; Ziad Othman, the manager of a 
textile company; and the economic advisor and other members 
of the Tulkarm Chamber of Commerce. 
 
Businesses Protest "One Size Fits All" 
Approach at Crossings 
-------------------------------------- 
 
¶3.  (SBU) Tulkarm Chamber of Commerce members told PITA 
contractors that an average of only 40 trucks cross into 
Israel through the Tulkarm/Sha'ar Efraim crossing daily.  The 
businessmen said that the Israeli civilian contractor 
operating the crossing requires all exports from the West 
Bank to pass through the scanning operation in pallet-sized 
loads, a difficult if not impossible requirement for many 
furniture, mattress, and stone factories.  USAID installed a 
4 MeV mobile container scanner at Tulkarm/Sha'ar Efraim. 
Drivers at the terminal said that Israeli authorities only 
allow it to scan empty containers, however, because they do 
not have the equipment to lift full containers off the truck 
beds.  The businessmen added that wait times are 
unpredictable and can reach up to three hours.  They 
attributed the delays to poor communication between drivers 
and a system that requires the Palestinian truck to wait 
outside the crossing until its Israeli counterpart has 
arrived. 
 
Israeli Settlers Becoming Middlemen of Last Resort 
--------------------------------------------- ----- 
 
¶4.  (SBU) The businessmen said that few options remain 
available to businesses unable to palletize their goods. 
They noted that no Tulkarm businesses are able to operate 
Israeli-plated vehicles, as is done in Hebron (reftel). 
Instead, they said, beginning two to three months ago, 
businesses began contracting with Israeli settlers to act as 
middlemen, who ship the Palestinian goods to Israel on 
Israeli-plated trucks via settler roads.  Businessmen in the 
textile and furniture industries said this practice erodes 
their companies' profitability by up to 30 percent. 
 
Poor Road Quality Increases Cost 
of Using Tulkarm/Sha'ar Efraim 
-------------------------------- 
 
¶5.  (SBU) The road approaching the Tulkarm/Sha'ar Efraim 
crossing from the West Bank side is in terrible condition, 
according to PITA contractors who visited the site.  Mohammad 
Yaseen, head of the Truck Drivers' Union in Tulkarm, told 
PITA contractors that annual maintenance costs for trucks 
shipping goods through Tulkarm/Sha'ar Efraim have increased 
by 40 to 50 percent.  According to the Tulkarm Chamber of 
Commerce, the Tulkarm municipality applied for permission to 
repave the road, but Israeli authorities denied the request 
because the road is located on Area C land. 
WALLES