VZCZCXRO0315
RR RUEHROV
DE RUEHJM #0125 0241446
ZNR UUUUU ZZH
R 241446Z JAN 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC 0330
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RHEHNSC/NSC WASHDC

UNCLAS JERUSALEM 000125 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR GOLDBERGER, SHAMPAINE, 
BELGRADE; NSC FOR ABRAMS/SINGH/PASCUAL 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ECON IS KWBG
SUBJECT: PALESTINIAN OFFICIALS TELL CODEL VOINOVICH PA IS 
READY TO MANAGE GAZA CROSSINGS 
 
 
¶1.  (SBU) Summary:  Senator George Voinovich (R-OH), 
accompanied by Representatives Phil Gingrey (R-OH), Rob 
Bishop (R-UT), Steve Pearce (R-NM), and Michael Turner 
(R-OH), met separately on January 6 with Palestinian 
Authority Prime Minister Salam Fayyad and Foreign Minister 
Riad Maliki.  Maliki told the CODEL that the current 
Palestinian Authority (PA) government, guided by principles 
of good governance, represents a break with the past.  Both 
officials said the PA is ready to manage Gaza crossing 
points.  Fayyad asserted that GoI sanctions on Gaza benefit 
Hamas, enabling it to control and tax tunnel traffic between 
Gaza and Egypt.  Fayyad told the CODEL that budget support is 
the PA's top assistance priority.  End summary. 
 
Maliki:  Gaza Must be Recovered 
-------------------------------- 
 
¶2.  (SBU) Maliki told CODEL Voinovich that PM Fayyad's 
government has "clearly split" with prior Palestinian 
governments by concentrating on good governance, 
anti-corruption, and transparency.  Developing a market 
economy driven by the private sector and developing civil 
society are top government priorities, said Maliki. 
 
¶3.  (SBU) Maliki said the West Bank and Gaza are "integral 
parts" of a future Palestinian state, and Gaza "has to be 
recovered," but not by force.  Instead, he said the PA needs 
to make the West Bank a positive example for Gazans to 
follow, thereby putting pressure on Hamas.  Maliki also said 
the PA is ready to manage the Palestinian side of the Gaza 
crossing points, giving the PA a toehold in the territory and 
undercutting Hamas controlled smuggling traffic through the 
tunnels between Gaza and Egypt. 
 
PM Fayyad:  Gaza Sanctions Reinforce Hamas Control 
--------------------------------------------- ------ 
 
¶4.  (SBU) PA Fayyad told the CODEL that the lack of a 
coherent border crossing system for Gaza empowers Hamas.  For 
example, he continued, Hamas scored significant political 
points by arranging for Hajj pilgrims to exit Gaza through 
the Rafah crossing point to Egypt.  Fayyad said the PA, 
coordinating with Israel, can manage the crossings in a 
straightforward, transparent way.  Sanctions, he continued, 
"don't make sense" because Hamas, which controls and taxes 
the tunnel trade, profits from them.  Fayyad said that if 
Israeli agrees to PA management of the crossings, Hamas would 
have "two choices, both bad" -- reject the proposal and lose 
credibility with the suffering Gazan population, or accept it 
and give the PA an entree into Gaza. 
 
Budget Support Top Assistance Priority 
---------------------------------------- 
 
¶5.  (SBU) Asked by Senator Voinovich about PA assistance 
priorities, Fayyad responded that budget support comes first, 
followed by support for projects outlined in the Palestinian 
Reform and Development Plan (PRDP).  Implementation of the 
PRDP would bring about a "major transformation of our 
economy," said Fayyad.  He said GoI access and movement 
restrictions in the West Bank will hinder project 
implementation, but he foresaw no easing until PA security 
improves.  Fayyad said the PA is "determined to do what we 
need to do" on the security front, adding that he is "tired 
of the skepticism" about PA capabilities.  Better security 
performance will lead to better economic performance, said 
Fayyad, concluding that the West Bank's 4 billion USD economy 
could double if obstacles to access and movement are removed. 
 
 
¶6.  (U) CODEL Voinovich has cleared this cable. 
 
 
 
WALLES