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Viewing cable 07OSLO362, NORWAY NORMALIZING ECONOMIC RELATIONSHIP WITH

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Reference ID Created Released Classification Origin
07OSLO362 2007-04-13 11:08 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Oslo
VZCZCXYZ0006
OO RUEHWEB

DE RUEHNY #0362 1031108
ZNR UUUUU ZZH
O 131108Z APR 07
FM AMEMBASSY OSLO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5492
INFO RUEHXP/ALL NATO POST COLLECTIVE IMMEDIATE
RUEHTV/AMEMBASSY TEL AVIV IMMEDIATE 1321
RUEHJM/AMCONSUL JERUSALEM IMMEDIATE 0466
UNCLAS OSLO 000362 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN IS KPAL PINS PREL ISPA NO
SUBJECT: NORWAY NORMALIZING ECONOMIC RELATIONSHIP WITH 
PALESTINIANS 
 
 
1. (U) Summary: Palestinian Finance Minister Fayyad's April 
12 visit to Oslo highlighted the economic aspect of Norway's 
March 17th decision to normalize relations with the 
Palestinian National Unity Government (NUG).  FM Stoere 
stated that Norway is ready to resume direct, broad budgetary 
support to the NUG when the time is right.  In addition, 
Norway will now resume direct and specific assistance to 
three ministries, Culture, Education and Planning.  Stoere 
also stated that he expected the NUG to recognize Israel, 
address security concerns and contribute to the release of 
Cpl. Shalit and BBC journalist Alan Johnston.  End Summary 
 
2. (SBU) Fayyad visited Norway after meetings in Brussels and 
before meetings in Washington. His conversations with the 
Norwegians focused on the technical details of how to resume 
Norwegian direct budget support for the Palestinian 
government and how to improve donor countries relationship 
with the NUG. Norway called upon donor countries to think 
constructively on the changed political reality which the NUG 
represents. MFA officials told emboff that once banking 
restrictions are resolved and the Fayyad is able to establish 
a single treasury account with appropriate accounting 
standards Norway will resume direct budget support for the 
NUG, as they did in the past with the Palestinian Authority. 
The exact amount of this budgetary assistance has not yet 
been determined but is expected to be similar to 2005 levels, 
100 million kroner (17 million dollars).  Total Norwegian 
assistance to Palestine in 2007 is expected to be 
approximately 650 million kroner (110 million dollars).  The 
resumption of direct assistance to the Culture, Education and 
Planning Ministries is also a return to previous methods of 
operation. Norwegian development assistance had not 
completely stopped but had instead been funneled through 
contractors or directly to the schools, museums, etc 
themselves.  The amount of this assistance is not large but 
it is a symbolic step as it directly supplies money to 
Hamas-controlled ministries.  Norway also announced that it 
will donate 75 million kroner (12.5 million dollars) to UN 
humanitarian efforts in the Palestinian territories. 
 
3. (U) Palestinians are the largest recipients of Norwegian 
assistance and Norway is eager to resolve the international 
banking restrictions on the NUG.  Norway believes that only 
through supporting the finance ministry with direct 
assistance will it be possible to encourage direct, effective 
and open use of assistance.  Stoere's comments during the 
press brief were primarily focused on economic aspects of the 
normalization process with the exception of his call for the 
NUG to recognize Israel, address security concerns and assist 
in freeing captives. 
WHITNEY