VZCZCXRO3935
PP RUEHROV
DE RUEHJM #2178/01 3371413
ZNR UUUUU ZZH
P 021413Z DEC 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC PRIORITY 3424
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 2746
RUEHGV/USMISSION GENEVA 0158
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 03 JERUSALEM 002178 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR PRM/FO, PRM/ANE, NEA/IPA 
 
E.O. 12958: N/A 
TAGS: PREF PREL PGOV PHUM EAID KPAL
 
SUBJECT: PRM ACTING A/S WITTEN ATTENDS UNRWA'S ANNUAL HOSTS AND 
DONORS MEETING 
 
¶1. (SBU) Summary:  The UN Relief and Works Agency for Palestine 
Refugees in the Near East (UNRWA) held its semiannual Advisory 
Commission (AdCom) meeting November 17 and its annual Hosts and 
Donors Meeting November 18-19 in Amman to discuss current 
developments affecting Palestinian refugees, UNRWA's financial 
situation, efforts to operationalize UNRWA's protection strategy, 
and plans to commemorate UNRWA's 60th anniversary.  UNRWA 
highlighted in particular the adverse operational effects it faces 
in 2009 in light of a possible $157 million shortfall and also 
provided updates on its three-year management reform process.  PRM 
Acting Assistant Secretary Witten attended the two-day Hosts and 
Donors Meeting, conducted side meetings with UNRWA senior officials, 
and signed the 2009 USG-UNRWA Framework for Cooperation.  End 
Summary. 
 
Commissioner General Focuses on 
Shortfalls and Reform 
------------------------------- 
 
¶2. (SBU) In her opening address, UNRWA Commissioner General Karen 
AbuZayd noted that UNRWA will confront significant challenges in 
2009 and requested AdCom members to give special consideration for 
the "60th anniversary of Palestinian exile."  Ongoing hardship in 
the West Bank and Gaza caused by obstacles to movement, the 
separation barrier, and settlement expansion challenge the viability 
of a future two-state solution, she said.  Noting the "tremendous 
cost of the occupation" on UNRWA operations, AbuZayd called on all 
AdCom members to promote peace in the region.  Resolving these 
challenges "is essential if donor support to UNRWA is to bear 
fruit." 
 
¶3. (SBU) AbuZayd said UNRWA's 2009 financial outlook is "so grim 
that UNRWA will have to examine cutting services for the first time" 
in its history. Expected shortfalls leave at least an USD 157 
million gap, AbuZayd and senior UNRWA staff stressed repeatedly in 
the three days of meetings.  AbuZayd noted that the Organizational 
Development Plan (ODP), which began in 2006 and will conclude in 
2009, has made gains in field-driven reforms in education, health, 
and relief, while also streamlining human resource management, 
program management, procurement, and leadership.  She highlighted 
the progress on UNRWA's first-ever Medium Term Strategy for 
2010-2015 and a 2010-2011 biennium budget that is needs-based and 
reflects the agency's strategic priorities. 
 
UNRWA Developments in West Bank, 
Gaza, Lebanon, Jordan and Syria 
------------------------------- 
 
¶4. (SBU) Each of UNRWA's five field directors described operational 
successes and challenges of the previous six months. Common themes 
were difficulties posed by border closures and access restrictions; 
shortage of schools and double shifting in existing schools; and 
increased health care concerns. 
 
-- GAZA:  UNRWA Director for Gaza Operations John Ging reported that 
the Gaza crossings had been closed since November 4, forcing UNRWA 
to temporarily suspend food assistance to 750,000 Palestinian 
refugees in Gaza.  He emphasized the need to re-open the crossings 
for humanitarian access and reminded donors that UNRWA has not been 
able to recommence USD 93 million in infrastructure projects in 
Gaza, including shelters, schools, and health clinics.  (Note: The 
crossings were open 11/24 for humanitarian goods and closed again 
11/25. End Note.)  Ging highlighted the success of the "Schools of 
Excellence" initiative that helped 81 percent of failing children to 
pass through a remedial summer learning program.  UNRWA/Gaza has 
also introduced the UNRWA-wide Human Rights Initiative to integrate 
the Human Rights and Tolerance Education curriculum into UNRWA 
schools to counteract the behavioral and psychological impact of the 
ongoing conflict.  Ging is seeking support for a special education 
program to assist 20,000 - 40,000 refugee children with 
disabilities.  Ging reported that reforms in the relief and 
emergency programs resulted in more accurate targeting of the 
poorest of the poor, and in 15 percent efficiency savings. 
 
-- WEST BANK:  Director for West Bank Operations Barbara Shenstone 
also reported that UNRWA's WB operations were substantially 
undermined by Israeli-imposed closures and incursions into UNRWA 
facilities.  Shenstone noted an increase in roadblocks over the past 
year and the absence of "on the ground" improvements in the West 
Bank.  Although UNRWA staff access improved in June-July, September 
witnessed a sharp rise in movement restrictions.  So far in 2008, 
UNRWA has recorded 17 incidents of military incursions into UNRWA 
schools and facilities.  Furthermore, house demolitions, evictions 
and settler violence accelerated.  Within this "conflict 
environment," Shenstone said, UNRWA struggles to respond to the 
 
JERUSALEM 00002178  002 OF 003 
 
 
rising needs.  Shenstone highlighted two special initiatives:  1) 
"protection" against the impact of violent hostilities, and 2) 
integrated, localized emergency response.  UNRWA/WB is also leading 
an interagency effort to research and respond to the nutrition 
problems of Palestinian refugees and integrating women into the 
emergency job creation program. 
 
-- JORDAN:  Director for Jordan Operations Richard Cook noted that 
UNRWA/Jordan's 2008 budget was cut by 18 percent due to funding 
shortfalls, preventing UNRWA from filling important international 
and national position vacancies in health and education. 
Overburdening of staff is affecting the level and quality of 
services delivered.  Systemic underfunding has also led to 
inadequate school facilities in Jordan where over 90% of UNRWA 
schools operate on a double shift.  Access to UNRWA services in 
remote areas also poses a serious challenge, especially for the 
131,000 "ex-Gazan" refugees in Jordan who do not have citizenship 
and cannot access government services or public employment 
opportunities.  Cook also stressed the need for shelter 
rehabilitation to repair dilapidated homes. 
 
-- LEBANON:  Deputy Director for Lebanon Roger Davies said UNRWA 
faces significant challenges in Lebanon due to the complex political 
and security environment.  He said he was encouraged by strong GoL 
cooperation in the reconstruction of Nahr al-Bared (NAB).  Davies 
reported that rubble removal began in October and that construction 
of package one (first tranche of housing) will commence in January 
¶2009.  He requested donors to fulfill their pledges made at the June 
2008 Vienna Conference, noting that receipt of 70 percent of those 
pledges (USD 112 million) would enable UNRWA to reconstruct more 
than 1,000 housing units.  Davies expressed some concern over recent 
security incidents in the camps, especially in Ein El Hilweh.  He 
also identified refugees' access to hospitalization services as a 
key challenge for 2009.  UNRWA underfunding is severely affecting 
its ability to refer refugees for secondary and specialized health 
services in Lebanon. 
 
-- SYRIA:  Director Panos Moumtzis noted strides in education, 
vocational training, and capacity building, particularly for the 
majority youth population.  UNRWA/Syria's needs assessment revealed 
that youth under the age of 25, comprising over 50 percent of 
Syria's Palestinian refugee population, have a much higher rate of 
unemployment than Syrian youth.  In response, UNRWA embarked on a 
rigorous "youth and business" initiative, including school 
construction, expansion of vocational training and establishment of 
youth career centers in five camps.  UNRWA/Syria is also using 
school buildings to offer adult education in the evenings.  With all 
UNRWA schools currently operating on a double-shift, Moumtzis 
appealed to donors to support school construction to avoid moving to 
a triple-shift in the near future.  He also appealed to regional 
governments to address the needs of Palestinian refugees from Iraq 
stranded for three years in al-Tanf camp on the Syrian-Iraq border. 
 
UNRWA Facing Bleak Financial Situation in 2009 
--------------------------------------------- - 
 
¶5. (U) UNRWA Deputy Commissioner General Filippo Grandi noted that 
UNRWA anticipates a 2009 budget shortfall of USD 157 million (of a 
USD 583 million budget).  UNRWA's 2009 Budget includes its original 
2009 estimates of USD 549 million, UNRWA along with USD 34 million 
in additional required expenditures, due to currency adjustments, 
hiring 900 teachers in Gaza, and maintaining competitive salaries. 
 
¶6. (U) Grandi emphasized that, in 2009, UNRWA will have to seek 
increased resources while imposing additional austerity measures. 
To illustrate UNRWA's precarious financial situation, Grandi 
explained that UNRWA's working capital has fallen from USD 15.6 
million at the beginning of 2008 to USD 1.3 million as of January 1, 
¶2009.  Insufficient working capital will impact UNRWA's ability to 
loan money internally to ensure continuity of health, education and 
relief services early in 2009.  At the urging of the Norwegian 
chair, AdCom participants agreed to hold an extraordinary meeting in 
late February or March 2009 to detail how UNRWA will adjust to its 
2009 shortfall and assess donor plans to help bridge the funding 
gaps. 
 
UNRWA's Protection Strategy in Action 
------------------------------------- 
 
¶7. (SBU) UNRWA Legal Advisor Anna Segall led a panel discussion on 
UNRWA's efforts to translate its protection strategy, developed in 
2007, into action.  Segall stated that UNRWA considers its 
protection mandate as distinct from UNHCR's mandate, because it does 
not include durable solutions (e.g, finding a place of permanent 
residence).  UNRWA aims to safeguard Palestinian refugees' rights 
 
JERUSALEM 00002178  003 OF 003 
 
 
vis-a-vis host governments and the GOI, to deliver services that 
protect these rights, and to ensure that protection needs cut across 
all UNRWA's policies and programs. 
 
¶8. (SBU) UNRWA Protection Officer Florence Anselmo highlighted the 
acute protection needs due to the ongoing conflict in West Bank and 
Gaza.  The humanitarian impact of the conflict in refugee camps 
includes human casualties, property damage, increased domestic 
violence, higher incidence of child depression, and lower academic 
achievement. UNRWA responds to these needs, including through 
advocacy with the GOI on refugees' behalf, providing counseling 
services for women and children and delivering mobile health 
services to refugees unable to access UNRWA services due to movement 
restrictions. 
 
UNRWA Plans To Commemorate 60th Anniversary 
------------------------------------------- 
 
¶9. (SBU) UNRWA staff reported that, on December 8, the 60th 
anniversary of UNRWA's mandate, UNRWA will launch a world-wide 
commemoration of its six decades of work.  Working with host and 
donor governments, UNRWA hopes to hold events and activities 
September 2009 - June 2010 to highlight achievements in children's 
health and education, relief and micro-credit programs.  UNRWA is 
also planning a high level event at the UN General Assembly in 
September 2009 in New York.  Other proposed activities include 
concerts; digitizing UNRWA's archives; creating a resource center 
and a museum documenting the Palestinian refugees and highlighting 
their achievements; a high impact visual art installation project 
entitled "Between Heaven and Earth;" and a scholarship endowment for 
refugee children to pursue higher education.  UNRWA hopes the 
commemoration activities will serve as a platform to attract 
non-traditional donors and expand and diversify funding 
opportunities. 
 
Acting Assistant Secretary Witten 
Holds Side Meetings 
----------------------------------- 
 
¶10. (SBU) AA/S Witten met separately with CG Karen AbuZayd, Deputy 
Commissioner General Filippo Grandi, Senior Regional Representative 
Peter Ford, External Relations Director Fabian McKennon, and other 
UNRWA officials.  Discussions focused on 2009 shortfalls and UNRWA 
efforts to attract new donors, particularly Arab States, as well as 
the continuing difficult political context in West Bank and Gaza and 
its implications for UNRWA's humanitarian mandate.  Witten explained 
USG funding constraints and uncertainty for FY 2009, but reaffirmed 
USG commitment to UNRWA. AA/S Witten strongly cautioned senior UNRWA 
officials to avoid letting the commemoration of its 60th anniversary 
turn into a forum for political debate or criticism of Israel.  CG 
AbuZayd strongly agreed and stressed that the aim was to promote new 
donor interest in UNRWA and UNRWA's mission of providing services to 
the UNRWA-registered Palestinian population.  On November 18, AA/S 
Witten and CG AbuZayd signed the 2009 USG-UNRWA Framework for 
Cooperation, which lays out mutual priorities for 2009, including 
performance targets for UNRWA's health, education, relief and social 
services, and its emergency programs. 
 
¶11. AA/S Witten has cleared this cable. 
Walles