VZCZCXRO3928
OO RUEHROV
DE RUEHJM #0440/01 0681225
ZNR UUUUU ZZH
O 091225Z MAR 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4336
INFO RUEHXK/ARAB ISRAELI COLLECTIVE IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE

UNCLAS SECTION 01 OF 02 JERUSALEM 000440 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE AND IPA; PRM FOR WITTEN; NSC FOR 
SHAPIRO/PASCUAL, TREASURY FOR MOGER/AHERN 
PLEASE PASS TO USAID FOR BORODIN/NANDY/LAUDATO 
 
E.O. 12958: N/A 
TAGS: EAID ECON ETRD PHUM PREL PGOV PTER KWBG IS
SUBJECT: AID SHIPMENTS TO GAZA CONTINUE, AD HOC RULES 
FRUSTRATE DONORS 
 
REF: JERUSALEM 360 
 
¶1. (SBU) Summary:  International assistance agencies and NGO 
contacts report that unclear rules and ad hoc decision-making 
continue to hamper delivery of humanitarian aid to Gaza.  For 
example, a high-level GOI decision was required to allow 
USG-provided jam and halva to enter Gaza, but the exemption 
is valid only for one week.  Other items in the assistance 
package that were denied entry previously, including 
toothpaste, were approved without difficulty this time.  The 
shortage of banknotes in Gaza has delayed disbursement of 
Palestinian Authority (PA) salaries and limited social 
welfare payments.  Two additional truckloads of carnations 
were exported from Gaza, while the volume of goods and fuel 
entering Gaza through authorized crossings remained steady. 
End summary. 
 
Jam and Halva OK, but Only For One Week 
--------------------------------------- 
 
¶2. (SBU) A dispute over a USAID assistance shipment of 7,138 
family packets containing various food items, soap, 
toothpaste, and toothbrushes occurred on March 3, when the 
GOI ordered jam and halva, a local confectionery, removed 
from the boxes.  The GOI initially gave verbal clearance to 
USAID for the shipment, but the NGO arranging delivery said 
the GOI later objected to halva and jam because of continued 
rocket fire from Gaza.  The NGO reported that the issue rose 
to a high-level Israeli Ministry of Defense official, who 
approved the jam and halva for one week only, and ordered 
that tahineh (a sesame base for making halva) be removed from 
next week's shipments of more than 4,500 family packets. 
Pasta, chick peas, and lentils, the objects of a prior access 
controversy (reftel), were allowed entry without difficulty. 
A second NGO delivering USG assistance reported that the GOI 
denied access for flashlights, which the NGO had delivered in 
a prior aid shipment without incident. 
 
Rejected Macaroni to be Distributed in Egypt 
-------------------------------------------- 
 
¶3. (SBU) Sources at Mercy Corps said that although the GOI is 
now allowing pasta to enter Gaza, Israeli Customs refused 
entry to its 90 metric tons macaroni shipment on March 2 
without providing a reason.  (Note:  The Mercy Corps shipment 
ignited the controversy over allowing pasta into Gaza.  End 
note.)  Mercy Corps now plans to distribute the pasta in 
Egypt. 
 
Ad Hoc Decisions Raise Costs 
---------------------------- 
 
¶4. (SBU) According to international aid agency sources, on 
March 3, GOI authorities at Kerem Shalom crossing denied 
entry to 704 packets of washing powder because the cargo did 
not have an environmental certificate.  The sources said an 
identical shipment passed through Kerem Shalom on February 
¶26. 
 
¶5. (SBU) A World Food Program (WFP) official told EconOff 
that what passes through Kerem Shalom often depends on the 
decisions of low-level crossing personnel.  He said one 
official denied entry to high-protein biscuits one day, but, 
several days later, a different official allowed them to 
pass.  He said WFP wasted large sums of money paying for 
transport and storage of rejected goods.  He added that 
international aid agencies are requesting that the GOI 
clearly define the process for approval of relief items for 
Gaza to increase predictability and avoid additional charges 
for rejected cargo. 
 
UXO Equipment Verbally Approved 
------------------------------- 
 
¶6. (SBU) Managers of the UN's unexploded ordnance (UXO) 
project reported that the GOI has verbally approved entry of 
their equipment.  Whether the approval covers explosives 
needed in bomb disposal is not clear.  Project managers added 
that they continue to negotiate with the GOI on a suitable 
UXO disposal site. 
 
Cash Shipments a Continuing Problem 
----------------------------------- 
 
¶7. (SBU) UNRWA sources reported that its cash assistance 
 
JERUSALEM 00000440  002 OF 002 
 
 
programs have stalled due to banknote shortages.  UNRWA and 
PA sources said the GOI has not approved cash requests except 
for UNRWA salary payments, leaving it unable to provide 
regular cash assistance to Gazan families or rental subsidies 
to 2,008 refugee families whose homes were destroyed in the 
fighting.  PA salaries were credited to bank accounts on 
March 6, but bank branches in Gaza have not disbursed funds 
due to a lack of banknotes.  Bank of Palestine sources said 
cash availability is back to the level of December 2008, when 
banks were forced to close for lack of banknotes. 
 
Second Export Shipment of Carnations 
------------------------------------ 
 
¶8. (SBU) PalTrade Gaza reported this week that two additional 
truckloads of carnations, the second and third export 
shipments since June 2008, passed through Kerem Shalom bound 
for The Netherlands. 
 
Volume of Food and Fuel Steady but Limited 
------------------------------------------ 
 
¶9. (SBU) During the period March 1-6, between 100-120 
truckloads/day of goods entered Gaza through Kerem Shalom, 
30-50 truckloads/day of grains entered via the conveyor at 
Karni, and about 435,000 liters/day of industrial fuel for 
Gaza Power Plant entered through Nahal Oz.  Spot shortages of 
cooking gas were reported.  Aid agency sources said the GOI 
informed them that Sufa crossing will not reopen. 
WALLES