VZCZCXYZ0033
OO RUEHWEB

DE RUEHJMA #0900 1361425
ZNR UUUUU ZZH ZUI RUEWMCE2120 1361425
O 161425Z MAY 07
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC0000
INFO ARAB ISRAELI COLLECTIVE
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHBS/USEU BRUSSELS

UNCLAS JERUSALEM 000900 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
WILLIAMS/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/WATERS; 
TREASURY FOR NUGENT/HIRSON 
 
E.O. 12958: N/A 
TAGS: ECON ETRD ENRG EFIN PHUM KWBG
SUBJECT: GAZA ECONOMY AT A STANDSTILL AS VIOLENCE RAGES 
 
¶1.  (SBU) HEAVY FIGHTING IN GAZA CITY HAS LED TO AN 
"UNDECLARED CURFEW" ON GAZA STREETS, ACCORDING TO MOHAMMED 
AL-KHOZENDAR, OWNER OF SEVERAL GAS STATIONS IN GAZA.  WHILE 
KHOZENDAR HAS KEPT SOME OF HIS GAS STATIONS OPEN, HE SAID 
THERE ARE NO CUSTOMERS.  USAID GAZA-BASED STAFF REPORTED THAT 
THE STREETS ARE EMPTY EXCEPT FOR MILITANTS, AND MOST SHOPS IN 
GAZA ARE CLOSED. 
 
BUSINESSES, INSTITUTIONS, AND CROSSINGS CLOSED 
--------------------------------------------- - 
 
¶2.  (SBU) USAID GAZA-BASED STAFF SAID THAT KARNI/AL-MINTAR 
AND RAFAH CROSSINGS WERE CLOSED MAY 15 AND 16, EXCEPT FOR A 
BRIEF PERIOD ON MAY 15 WHEN RAFAH OPENED TO ALLOW 450 PA 
SECURITY FORCE MEMBERS TO RETURN FROM TRAINING IN EGYPT.  THE 
PALESTINIAN MONETARY AUTHORITY AND BANKS CLOSED ALL GAZA 
BRANCHES MAY 16 TO PROTEST THE VIOLENCE.  THE PA MINISTRY OF 
EDUCATION PUBLICLY ANNOUNCED SCHOOL CLOSURES IN GAZA ON MAY 
16 AND 17.  PALESTINIAN TELEVISION REPORTED THE SUSPENSION OF 
CLASSES AT GAZA UNIVERSITIES FROM MAY 15-17.  DESPITE HAMAS 
MILITANTS' FORCED ENTRANCE INTO THE GAZA INDUSTRIAL ESTATE 
(GIE) LOCATED NEXT TO KARNI CROSSING, TWO FACTORY OWNERS 
THERE TOLD USAID GAZA-BASED STAFF THAT THE NATIONAL SECURITY 
FORCES WERE ABLE TO REPEL BOTH THE MILITANTS AND HUNDREDS OF 
POTENTIAL LOOTERS.  THE OWNERS REPORTED THAT THE GIE 
SUSTAINED NO SIGNIFICANT DAMAGE.  NEVERTHELESS, THE PRIVATE 
SECTOR IS BASICALLY AT A STANDSTILL BECAUSE FEW DARE TO LEAVE 
THEIR HOMES. 
 
HOSPITALS IN "STATE OF EMERGENCY" 
--------------------------------- 
 
¶3.  (SBU) GAZA HOSPITALS ARE IN A "STATE OF EMERGENCY."  DR. 
JUMA AL-SAQA OF DAR AL-SHIFA HOSPITAL IN GAZA CITY TOLD THE 
LOCAL PRESS THAT THERE IS NO BLOOD AT ALL IN THE HOSPITAL'S 
BLOOD BANK AND THAT, BECAUSE PEOPLE FEAR LEAVING THEIR HOMES, 
THE HOSPITAL IS NOT RECEIVING DONATIONS, EITHER.  THE WHO 
REPRESENTATIVE IN GAZA SAID THAT THE HOSPITAL WAS ALSO SHORT 
OF X-RAY FILM AND DISPOSABLES.  HANAN TAHA, DIRECTOR OF 
PALTRADE IN GAZA, ADDED THAT SHOOTINGS AND MILITANT 
ROADBLOCKS ARE DRAMATICALLY INCREASING THE TIME IT TAKES FOR 
AMBULANCES TO BRING THE INJURED TO HOSPITALS. 
 
TENUOUS ELECTRICITY SUPPLY BUT WATER IS AVAILABLE 
--------------------------------------------- ---- 
 
¶4.  (SBU) TAHA TOLD ECON SPECIALIST THAT WHILE THERE ARE NO 
RETAIL FUEL SHORTAGES, GAZA CITY EXPERIENCED A TWO-HOUR POWER 
OUTAGE MAY 16, WHICH SHE ATTRIBUTED TO GUNSHOTS HITTING POWER 
LINES.  WATER CONTINUES TO BE AVAILABLE, ACCORDING TO USAID 
GAZA-BASED STAFF. 
WALLES