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Viewing cable 07JERUSALEM1576, LOCAL DEVELOPMENT FUND CONVENES; SUPPORTS

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Reference ID Created Released Classification Origin
07JERUSALEM1576 2007-07-30 07:09 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Jerusalem
VZCZCXRO5501
OO RUEHROV
DE RUEHJM #1576 2110709
ZNR UUUUU ZZH
O 300709Z JUL 07
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8524
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
UNCLAS JERUSALEM 001576 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
WILLIAMS/SHAMPAINE/STEINGER; PRM FOR PDAS GREENE AND 
PRM/ANE; NSC FOR ABRAMS/WATERS; TREASURY FOR 
SZUBIN/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER; PLEASE 
PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN PREL PROV KWBG
SUBJECT: LOCAL DEVELOPMENT FUND CONVENES; SUPPORTS 
SEPTEMBER AHLC MEETING 
 
REF: JERUSALEM 1519 
 
1.  (SBU) Summary.  The Local Development Forum (LDF) met 
July 24 for the first time since December 2005.  Prime 
Minister Salam Fayyad stressed the urgent need for donor 
assistance and called for an Ad Hoc Liaison Committee (AHLC) 
meeting in September, followed by a donors' conference before 
the end of the year.  He called on donors not to confer 
"legitimacy"  on the Hamas take-over of Gaza.  The Consul 
General reiterated USG support for the PA and expressed 
support for an AHLC meeting this fall.  While agreeing that 
the AHLC should convene soon, the EU was less clear on the 
timing and venue.  Norway reiterated its view that the AHLC 
should be occur on the margins of the UNGA and be held at the 
ministerial level.  End summary. 
 
2. (SBU) The Local Development Forum (LDF), which serves as a 
forum for regular coordination at the local level for donor 
and aid agencies, convened July 24 in Ramallah.  This was the 
first meeting of its kind since the LDF replaced its 
predecessor, the Local Aid Coordination Committee, in 
December 2005.  Chaired jointly by the Palestinian 
Authority's Ministry of Planning, Norway, the World Bank and 
UNSCO, and co-sponsored by the EU and USG, the LDF and its 
strategy groups became ineffective after March 2006 when the 
formation of a Hamas-led government prompted many donors to 
avoid working directly with the PA. 
 
3. (SBU) In a demonstration of both donor community-PA 
re-engagement as well as a reinvigorated aid coordination 
process, Prime Minister Salam Fayyad opened the July 24 LDF 
meeting.  Emphasizing the unity of the West Bank and Gaza and 
the need to address the humanitarian situation in Gaza, 
Fayyad said that the PA and the donor community "should 
proceed in a manner that does not confer any legitimacy" on 
the Hamas leadership in Gaza and "does not undermine the PA." 
 He said the PA is "fully engaged" in improving the lives of 
the Palestinian people.  He urged that, in the months ahead, 
donors consider a more comprehensive approach in formulating 
assistance plans.  Fayyad stated that sustainable development 
and the realization of normal economic life are more likely 
to be realized from the efforts of private enterprise than 
from donor programs. 
 
4. (SBU) Fayyad declared his support for Norway's proposal 
that an Ad Hoc Liaison Committee (AHLC) meeting to be held in 
September.  He stated that the AHLC meeting should "take 
stock" and "lay out what is expected in a clear and precise 
manner."  He said he hoped the meeting would "send a strong 
signal of support for what we're trying to do here under 
difficult circumstances."  Fayyad recommended that a broader 
donors' conference be held before the end of the year to 
follow-up on the AHLC meeting. 
 
5.  (SBU) In opening remarks after Fayyad, the Consul General 
stated that the USG supports Fayyad's position on an AHLC 
meeting and a follow-on donors' conference.  He noted that 
President Bush made clear in his July 16 speech that the USG 
is strengthening its financial commitment to the Palestinian 
people and the government led by President Abu Mazen and 
Prime Minister Fayyad.  EU and EC representatives voiced 
their support for holding an AHLC meeting soon.  The EC also 
announced an additional EURO 90 million in assistance, 
bringing the total to over USD 1.1 billion in 2007.  LDF 
Joint Chair Norway's Representative asserted that, based on 
consultations in recent days, consensus had been established 
on the need for an AHLC soon, and Oslo continues to propose 
that it be held at the Ministerial level on the margins of 
the UNGA. 
 
WALLES