VZCZCXRO4039
OO RUEHROV
DE RUEHJM #0514 0851529
ZNR UUUUU ZZH
O 251529Z MAR 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0960
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

UNCLAS JERUSALEM 000514 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA/IPA FOR GOLDBERGER/SHAMPAINE/SACHAR; NSC FOR PASCUAL; 
TREASURY FOR CONNOLLY; PLEASE PASS TO USAID FOR 
MCCLOUD/BORODIN 
 
E.O. 12958: N/A 
TAGS: ECON EAID KWBG IS OREP
SUBJECT: FAYYAD TO CODEL BOEHNER: PA APPRECIATES USG 
ASSISTANCE 
 
 
¶1. (SBU) Summary:  Prime Minister Fayyad expressed his thanks 
to CODEL Boehner on March 22 for U.S. budget support to the 
PA.  He said the PA will continue to strengthen transparency 
and improve the government's financial sustainability. 
Fayyad said he is encouraged by the improved security 
situation in the West Bank, but expressed frustration at 
continued IDF incursions, claiming that GOI actions undermine 
PA efforts to build public support for its security forces. 
End summary. 
 
USG Assistance Has Motivated Others 
----------------------------------- 
 
¶2. (SBU) Fayyad told CODEL Boehner on March 22 that the PA is 
very thankful to the U.S. for its recent USD 150 million cash 
transfer, calling it the largest single tranche of assistance 
received in the history of the PA.  Fayyad said that USG 
action has motivated other donors, like the EU, to accelerate 
implementation of their pledges. 
 
¶3. (SBU) Fayyad said that donor support has allowed him to 
pay down debt to the private sector and make nine consecutive 
monthly salary payments.  The PA has trimmed the public 
payroll, taken action to control spending, and is 
implementing numerous projects in the West Bank to upgrade 
and build roads, schools, youth clubs, and basic 
infrastructure.  He said the PA has been successful in 
implementing small-scale construction projects, which are not 
limited by restrictions on access and movement.  To increase 
the transparency of PA finances, Fayyad said that he would 
soon unveil a new website to make public information on PA 
revenues and expenditures. 
 
Improved PA Security in West Bank 
--------------------------------- 
 
¶4. (SBU) Fayyad said he is encouraged by improvements in the 
performance of PA security forces.  He underscored that the 
PA has taken tough, often unpopular, action in its "culture 
war" against Hamas, such as dissolving religious charities 
that served as conduits of funds to Hamas.  "We continue to 
fight the rejectionism prevalent in the region," he said. 
Hamas is not as strong as it was, "there are fewer Hamas 
flags in West Bank than before."  Fayyad said that continued 
GOI incursions into Nablus and other West Bank cities, 
however, undercut PA security forces' authority.  Regardless 
of these challenges, concluded Fayyad, his government's goal 
is to build the foundations of a viable Palestinian state. 
 
Bethlehem Conference To Encourage Investment 
-------------------------------------------- 
 
¶5. (SBU) The Prime Minister said the May 21-23 Investment 
Conference in Bethlehem would provide an emotional and 
financial lift to the PA.  "We need a new image," he said. 
He said he aims to boost Israeli as well as foreign 
investment in the West Bank to stimulate growth.  Fayyad said 
that high transport costs resulting from restrictions in 
access and movement prevent Palestinian companies from 
competing in regional markets.  The PA will continue to work 
with Israel, he said, to improve the "security versus 
business nexus." 
 
¶6. (U) CODEL Boehner did not have an opportunity to clear 
this message before departure. 
WALLES