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DE RUEHC #3770 2521914
ZNR UUUUU ZZH
O R 091857Z SEP 09
FM SECSTATE WASHDC
TO RUEHBY/AMEMBASSY CANBERRA IMMEDIATE 5192
INFO RUEHTV/AMEMBASSY TEL AVIV 9311
RUEHJM/AMCONSUL JERUSALEM 5634

UNCLAS STATE 093770 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN KWBG PGOV PREL OPDC IS
SUBJECT: MESSAGE FROM SECRETARY CLINTON TO AUSTRALIAN FM 
SMITH 
 
REF: STATE 80039 
 
¶1. This is an action request.  Post is requested to 
deliver the letter in para 2 from Secretary Clinton to 
Foreign Minister Smith in response to his August 26 
correspondence. 
 
¶2. Begin text of letter: 
 
Dear Mr. Minister: 
 
Thank you for your letter of August 26 and for taking new 
action to further our shared goal of a two-state solution 
to the Israeli-Palestinian conflict and a comprehensive 
peace between Israel and its neighbors.  President Obama 
and I are committed to achieving this goal, and Senator 
Mitchell is working intensively for the prompt 
resumption of negotiations and the early conclusion of a 
peace agreement establishing an independent Palestinian 
state alongside Israel and comprehensive peace in the 
Middle East. 
 
Ensuring the continued viability of a Palestinian 
Authority (PA) that can effectively respond to the needs 
of the Palestinian people and act as a genuine partner for 
peace is central to this effort.  Your contribution of an 
additional $10 million in budget support in 2009, in 
addition to your other support for the Palestinian people, 
will help the PA meet its immediate budget needs.  Despite 
your support and that of other international donors, 
including the United States, the PA still may face a 
year-end deficit of as much as $250 million.  I encourage 
you to assess if additional budgetary assistance can be 
made available to ensure that the PA avoids fiscal default 
and collapse.  In addition, your government's help in 
reaching out to other countries in your region, such as 
Japan, Indonesia and China, to explain the importance of 
budget support for the PA would constitute one practical 
way that Australia can help to create the conditions for 
peace. 
 
We are encouraging Israel, the Palestinians, and Arab 
states to take meaningful steps that create the context 
for peace and the resumption of successful negotiations. 
For the Israelis, this means stopping settlement activity 
and taking other measures to improve the daily lives of 
Palestinians and live up to Roadmap obligations.  For the 
Palestinians, this means taking action to prevent terror 
and incitement and redoubling efforts to reform 
Palestinian institutions.  For the Arab states, this means 
taking concrete steps toward peace and a thaw in relations 
with Israel in the spirit of the Arab Peace Initiative. 
Australia's help in reinforcing this message with all of 
the stakeholders, including Indonesia, would be of 
valuable help to our efforts. 
 
The U.S. Embassy in Canberra as well as the Department of 
State's Bureau of Near Eastern Affairs are available to 
provide your ministry with any information that may be 
useful for your efforts in helping achieve a comprehensive 
Middle East peace. 
 
Sincerely yours, 
 
Hillary Rodham Clinton 
 
End text of letter. 
CLINTON