VZCZCXRO6067
OO RUEHROV
DE RUEHJM #1317 1771405
ZNR UUUUU ZZH
O 261405Z JUN 07
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8174
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS JERUSALEM 001317 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
WILLIAMS/SHAMPAINE/BELGRADE; PRM FOR PDAS GREENE AND 
PRM/ANE; NSC FOR ABRAMS/WATERS; TREASURY FOR 
SZUBIN/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER; PLEASE 
PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN KPAL KWBG PGOV PHUM
SUBJECT: PRICES STABILIZE AS FOOD REMAINS AVAILABLE IN GAZA 
 
REF: JERUSALEM 1304 
 
¶1.  (SBU) Summary:  Food prices for most items in Gaza have 
returned to just above normal following the panic-buying and 
price increases that occurred immediately following the Hamas 
takeover of Gaza.  Gaza is not experiencing shortages of 
basic commodities.  Hamas threatened to confiscate goods from 
price-hiking food suppliers, releasing a phone number for 
Gaza consumers to report price abuses.  Many store owners 
have limited individual amounts sold to customers to control 
hoarding.  Dairy products were imported commercially into 
Gaza June 25.  UNRWA plans to ship food aid into Gaza this 
week.  End summary. 
 
Prices Slide This Week 
---------------------- 
 
¶2.  (SBU) WFP Spokesperson Kirstie Campbell told Econoff June 
26 that wheat-flour prices in Gaza City dropped 30 percent 
since early last week, after having climbed steeply due to 
panic-buying following the Hamas takeover in Gaza.  Campbell 
reported that most fruits and many vegetables remain 
unavailable is Gaza markets, having historically arrived via 
the closed Karni/al-Mintar crossing.  She said that Gaza's 
food supply is not currently experiencing shortages of basic 
food commodities. 
 
¶3.  (SBU) Hamas Executive Security Forces have warned against 
hoarding and price-hiking and established a phone number for 
Gaza consumers to report high, abusive prices, according to 
Gaza-based Palestinian Agribusiness Partnership Activity 
(PAPA) project director Salem al-Raiz.  He said that the 
warnings, which have been airing on Hamas-run al-Aqsa radio 
and television since June 18, have helped stem further 
panic-buying and sharp price increases in Gaza.  Market 
vendors and store owners have limited individual amounts sold 
to customers to prevent hoarding of basic food commodities, 
according to al-Raiz and Gaza-based OCHA representative 
Hamada al-Bayari June 26. 
 
Dairy Products Arrive/UNRWA Food Due 
------------------------------------ 
 
¶4.  (SBU) Paltrade reported that 15 truckloads of dairy 
products entered Gaza commercially via Sufa crossing June 25. 
 Al-Raiz said that dairy prices have held steady throughout 
June, as milk is contained in some of the recently-arrive 
food aid packages. 
 
¶5.  (SBU) UNRWA Gaza Director John Ging told Poloff June 26 
that UNRWA has enough food in its Gaza warehouses for food 
distribution until July 6.  He said that UNRWA has 104 
containers of Gaza-bound humanitarian aid at Ashdod port, 
which he plans to begin shipping into Gaza via Sufa crossing 
this week.  Ging said that these shipments should provide 
sufficient food for UNRWA beneficiaries through August. 
WALLES