VZCZCXRO2263
PP RUEHROV
DE RUEHEG #0033 0081349
ZNR UUUUU ZZH
P 081349Z JAN 09
FM AMEMBASSY CAIRO
TO RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 1310
INFO RUEHXK/ARAB ISRAELI COLLECTIVE

UNCLAS CAIRO 000033 
 
SENSITIVE 
SIPDIS 
 
NEA/ELA FOR CANEDO AND SCHALL 
DOE FOR ERICKSON 
 
E.O. 12958: N/A 
TAGS: ENRG PREL ECON PGOV IS EG
SUBJECT: CONTROVERSY GROWS OVER EGYPTIAN GAS EXPORTS TO 
ISRAEL 
 
REF: A. 08 CAIRO2373 
     ¶B. 08 CAIRO2257 
     ¶C. 08 CAIRO1359 
     ¶D. 08 CAIRO419 
 
SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE ACCORDINGLY. 
 
¶1. (SBU) SUMMARY:  On January 6, the Lower Administrative 
Court of Cairo asked the GOE to urgently comply with its 
November 2008 ruling that gas exports to Israel be stopped 
(ref A).  The November verdict is on hold pending review by 
the Higher Administrative Court and Court of Urgent Cases, 
which are poised to hear a complaint from the Egyptian State 
Lawyers' Authority, arguing that this verdict be dismissed. 
END SUMMARY. 
 
¶2. (SBU) On November 18, 2008, the Lower Administrative Court 
of Cairo issued a verdict calling for the cessation of 
natural gas exports to Israel, claiming that the export deal 
violated Article 123 of the Egyptian Constitution, pertaining 
to the protection and use of natural resources (ref A).  The 
court ruled that the Ministry of Petroleum (MOP) should not 
have pursued a deal involving natural resources without 
parliamentary review and approval.  The plaintiffs included 
retired Egyptian Ambassador Ibrahim Yousri and Mohamed Anwar 
el Sadat, a former MP and nephew of the late President, who 
represent the "Say No to Natural Gas Loss" citizens' 
campaign. 
 
¶3. (SBU)  The Egyptian State Lawyers' Authority (ESLA) filed 
a complaint in December to the Higher Administrative Court 
and to the Court of Urgent Cases, arguing that the Lower 
Administrative Court did not have the authority to hear a 
case involving issues of "national sovereignty."  The 
complaint will be reviewed on February 2.  Ismail Karara, 
Undersecretary for Gas Affairs at MOP, told the Egyptian 
press on January 8 that the Ministry is considering how to 
proceed if ESLA's complaint is overturned.  According to 
Karara, the Ministry of Justice will represent the GOE if 
further legal action, such as an appeal to the Higher 
Administrative Court, is undertaken. 
 
¶4. (SBU) COMMENT:  While always unpopular with the political 
opposition (refs B, C, & D), public disenchantment with 
Egyptian natural gas exports to Israel has become more vocal 
since the start of the Gaza incursion. The "Say No to Natural 
Gas Loss" group's protest outside of the State Council 
headquarters on January 6 and the Lower Administrative 
Court's statement of the same day reflect public anger with 
the ongoing Israeli military intervention in Gaza.  The GOE's 
lack of transparency and defensive posture about its oil and 
gas export deals has not helped defuse the situation. 
SCOBEY