VZCZCXRO0106
OO RUEHROV
DE RUEHJM #2393/01 3231515
ZNR UUUUU ZZH
O 191515Z NOV 07
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9708
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS SECTION 01 OF 02 JERUSALEM 002393 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
GOLDBERGER/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 KPAL KWBG PGOV PHUM IS
SUBJECT: GAZA: FUEL IMPORTS CUT; FARMERS HOPE TO EXPORT 
THIS YEAR'S HARVEST 
 
REF: JERUSALEM 2239 
 
¶1.  (SBU) Summary:  Gaza fuel imports have been reduced by 
roughly one-third since October 27.  Gaza-based WHO contacts 
report that Gazans are receiving an "all time low" level of 
medical care.  Humanitarian and commercial shipments have 
continued to enter Gaza in reduced quantities.  Gaza farmers 
are focused on whether they will be able to export their 
harvest this year, as USD 30 million worth of Gaza produce 
will ready for export from late-November through January. 
End summary. 
 
Fuel Cuts Pose Risk To Power Supply; 
Hamas Deters Major Price Increase 
--------------------------------- 
 
¶2.  (SBU) Director of the PA Fuel Agency in Gaza Mujahid 
Salama told Econoff on November 19 that fuel transfers at the 
Nahal Oz fuel transfer station have been reduced by more than 
one-third since October 27.  He said that diesel fuel has 
been cut by 30 percent; gasoline by 35 percent; cooking gas 
by 10 percent; and industrial fuel (used exclusively by the 
Gaza Power Plant) by 30 percent. 
 
¶3.  (SBU) Power Plant Manager Rafiq Maliha told Econoff 
November 19 that if the reduced fuel imports continue, his 
plant will be forced to reduce power output from 60 MW to 25 
MW by January.  European Commission TIM official Ian Hoskins 
confirmed this estimate, stating that the plant will use up 
all its reserve fuel before January. 
 
¶4.  (SBU) Gaza-based OCHA Representative Hamada al-Bayari 
said that Gaza fuel prices have increased by 10 percent since 
the fuel cuts began.  He opined that gas station owners have 
not increased prices more significantly for fear of Hamas 
retribution for perceived price gouging. 
 
Erez/Beit Hanoun Crossing 
------------------------- 
 
¶5.  (SBU) WHO Gaza director Mahmoud Daher told Econoff on 
November 19 that reduced hours at the Erez/Beit Hanoun 
crossing has resulted in a 15 percent reduction in medical 
patients permitted to depart.  Increased restrictions on 
after-dark travel across the Erez/Beit Hanoun crossing has 
also limited options for Gaza medical professionals in 
emergency cases. 
 
¶6.  (SBU) OCHA's al-Bayari and USG contractors in Gaza 
reported that Sufa crossing was open November 19 for beef 
cattle shipments and on November 18 for banana shipments into 
Gaza.  Kerem Shalom crossing was open November 19 for one 
hour - 15 truckloads of humanitarian goods were transferred. 
Kerem Shalom was closed on November 18.  (Note: Sufa was 
closed by the GOI on October 27, making Kerem Shalom, with a 
capacity of 60 truckloads per day, the only commercial 
crossing into Gaza.  End note.)  Al-Bayari added that, in 
spite of the closure regime, Gaza markets have sufficient 
food supply to meet Gazans' basic human consumption needs. 
 
 
Sufficient Supplies And Drugs; 
Hospital Infrastructure Lacking 
------------------------------- 
 
¶7.  (SBU) Daher said that Gaza hospitals have sufficient 
disposables and drugs, but are experiencing a lack of 
replacement parts for hospital medical machines, laundry 
machines, windows, doors, and floor materials.  He said that 
the absence of cement and other construction materials has 
halted all renovations and additions to Gaza hospitals, which 
incurred damage during the Hamas coup in June.  Gaza medical 
care, he summarized, has been reduced to an "all time low" in 
the last few months. 
 
¶8.  (SBU) Daher confirmed to Econoff on November 19 the death 
of a 20-year old Gaza cancer patient on November 17, as 
reported on by local news agencies.  Daher said that the 
Israeli NGO "Physicians For Human Rights" had made numerous 
requests to the GOI over the last two years to allow the 
20-year old patient to receive cancer treatment outside of 
Gaza, but all were denied. 
 
JERUSALEM 00002393  002 OF 002 
 
 
 
USD 30 Million In Agriculture Earnings Possible 
--------------------------------------------- -- 
 
¶9.  (SBU) Minister of Health (MoH) Director General of 
Planning Alaa Joma told Econoff November 19 that if Gaza 
agricultural exports are permitted this harvest (late 
November to early January), Gazan farmers would earn roughly 
USD 30 million in exports of strawberries, bell peppers, 
cherry tomatoes, and carnations to Israel and Europe. 
Gaza-based USG contractors said that 90 percent of the 
harvest will go to waste if they are not able to be exported. 
 
 
---- 
For the latest reports on the Palestinian economy, visit 
ConGen Jerusalem's unclassified intelink site at: 
http://www.intelink.gov/communities/state/pal econ 
WALLES