From: <a href="http://www.aftenposten.no/spesial/wikileaksdokumenter/article3972839.ece">Aftenposten</a><br>
Date: 4.12.2008

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S E C R E T TEL AVIV 002713 
SIPDIS 
NEA/IPA; TREASURY FOR GLASER, D. AND KIMMIT, R. 
E.O. 12958:
DECL: 12/04/2018
TAGS: EFIN, KNNP, KTFN, KPAL, PTER, PREL, IS
SUBJECT: GOI CALLS GAZA CASH CRISIS A HAMAS PLOY 
Classified By: CDA Luis G. Moreno for reasons 1.4(b) and (d)

1. (S)
Econoff called Udi Levi, Counterterrorism Finance Bureau
Director at the National Security Council (NSC) and a senior
intelligence officer on December 2 to press for release of NIS
250 million to the Gaza banking system, as requested by the
Palestinian Monetary Authority. Levi said continued rocket and
mortar attacks from Gaza, stalemate in negotions on release of
Hamas-held Israeli Defense Force soldier Gilad Shalit, and new
information on Hamas access to the Palestinian Authority
salary payments funded by the requested transfer all made it
unlikely that the GOI would honor the request.

2.(S)
Levi did say that the GOI is considering a policy to permit
about NIS 40 million in new liquidity to enter the Gaza Strip
banks on a monthly basis. The exact amount is still under
discussion, said Levi, but the Israeli security services have
agreed that monthly transfers of some amount of shekels to
Gaza are necessary to avoid collapse of the banking system
there.

3.(S)
However, Levi noted GOI intelligence has indications that Gaza
banks are being forced by Hamas to underreport their true
reserve holdings, so it is difficult for the GOI to assess the
current state of the banking system in Gaza. He said that the
banks have had no choice but to follow Hamas instructions and
conduct business as if they were operating on insufficient
reserves. He posited that the present pre-Eid crisis might be
an attempt by Hamas to further consolidate its power in Gaza
though he was vague on how the crisis would forward the Hamas
agenda. Regarding the PA,s payroll, Levi told econoff that it
included Hamas members and many other questionable individuals
that the GOI did not believe to be working as civil servants
for the Fatah-controlled PA. He offered to share all GOI
information on the topic in a meeting with relevant USG
officials at their earliest convenience. We will take him up
on that offer and report septel.

4.(S)
Comment: USG interlocutors at all levels have been urging the
GOI to provide the needed December salary payments and greater
certainty to Gaza,s banking sector going forward. Most
recently, Charge raised the NIS 250 million request with
COGAT/MOD PolMil Director Amos Gilad evening of December 3.
Gilad,s response was, "Theyre not getting a dime". However, we
do not expect that to be the last word from the GOI on the
subject.

5.(S)
Comment continued: Going forward, the GOI may set the monthly
transfer floor somewhat higher than the 40 million shekels
mentioned by Levi, but it is unlikely to eliminate uncertainty
completely by setting the floor at the roughly NIS 250 million
average level requested by the PA over the past few months.
Therefore, we expect this issue to remain an agenda item in
the Joint Economic Committee for the foreseeable future, and
anticipate continued pressure for USG intervention in the
monthly transfer process. Of greater concern is Levis claim to
have new evidence that the PAs current Gaza salaries list is
tainted by Hamas sympathizers. We will work with the GOI to
verify that claim and to make sure the PA has sufficient
information to re-vet the list, if necessary.

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