S E C R E T TEL AVIV 002930 NOFORN E.O. 12958: 
DECL: 12/31/2018 
TAGS: KWBG, MOPS, PREL, PTER, PINR, EAID, EFIN, IS 
SUBJECT: GAZA SITUATION REPORT, DECEMBER 31, 14:30 
REF: A. TEL AVIV 2922 B. TEL AVIV 2906 
Classified By: Classified by Acting Deputy Chief of 
Mission Marc Siever s, reason 1.4 (b) and (d)

1. (S) SUMMARY: While IDF troops remained on hold but still 
poised for a ground attack, rocket fire continues into Israel from Gaza,
including increased attacks beyond 30km, and the first hit in the city 
of Be'er Sheva. Israeli airstrikes are ongoing, although at a slowed 
tempo, with attacks reported along the Philadelphi corridor, in northern
Gaza, and on government buildings including the Hamas "Prime Minister's
Offices." Meanwhile, according to press reports, the "security kitchen 
cabinet" of PM Olmert, DM Barak and FM Livni decided to reject the 
French proposal for a 48-hour humanitarian cease-fire, calling it 
unrealistic because it was not permanent, placed limited demands on 
Hamas, and was unnecessary as no humanitarian crisis has developed in 
Gaza. According to COGAT, over 100 truckloads of humanitarian aid are 
scheduled to enter Gaza on December 31 through the Kerem Shalom 
crossing, while the Karni and Nahal Oz crossings remain closed due to 
ongoing mortar fire in the area. The Erez crossing remains open but 
restricted. With Karni and Nahal Oz closed, COGAT says it is working 
with UNRWA on logistically feasible options for bringing bulk grain and 
fuel through Kerem Shalom. Finally, the Bank of Israel has also given 
its approval for Bank Hapoalim and Discount Bank to end their 
correspondent relationship with Gaza banks as of January 1. 

Military Operations
-------------------

2. (S) DAO sources report that the IAF conducted 35 strikes
overnight, withIsraeli Naval forces also striking targets
withinGaza. This includes attacks against a reported Haas
training camp in northern Gaza, a second strie along the
Philadelphi corridor against smuggling tunnels, and the
bombing of additional government buildings including the
office building of Hamas "Prime Minister" Ismayil Haniyah. No
casualties were reported in these actions, although there are
reports of civilian casualties in other strikes, including one
that targeted a house in the Jabalya refugee camp.

3. (S) At 1430 local, DAO observers reported an increase in
IDF ground forces (over levels observed December 30) along the
Gaza border, including elements of at least four infantry and
three armor brigades. Unlike during previous observation
missions, IDF forces outside the northern Gaza Strip were
observed wearing full combat gear and deployed in a
combat-ready stance. Additional roads, including highway 4
north of the Erez crossing, were closed, and a large staging
area -- with lights, generators, field tents, water tanks and
other structures -- had been completed adjacent to the
northeast corner of the Gaza Strip.

4. (S//NF) Rocket fire into Israel continues as several more
towns suffered their first hit, including at least 5 impacts
in Be'er Sheva, the principal city in the Negev. Be'er Sheva
is Israel's sixth largest city, after Ashdod (which is also
under attack), with a population of 200,000. The first rocket
strike into Be'er Sheva was a 122mm Grad that the IDF told the
DAO they believe the Grad was made in China but are analyzing
it further before confirming.

5. (U) While no one was injured in the initial Be'er Sheva
attack, it hit an empty kindergarten and the news photos of
the burned dolls and destroyed children's toys elicited a
strong response from authorities and the public. The IDF has
expanded its orders to close the schools to additional "third
ring" cities, including Be'er Sheva, and asked residents to
stay in or near shelters and avoid public gatherings. At least
five more rockets have hit Be'er Sheva on December 31, and
attacks are reported on other towns including Ashkelon and
Yavneh. Early estimates are over 40 Qassam, Katyusha and Grad
rockets fired as of 1430 local on December 31.

Humanitarian Assistance
-----------------------

6. (U) COGAT told Emboffs that Kerem Shalom and Erez 
remain open, while Nahal Oz and Karni are still closed due to continued 
attacks in the vicinity of the crossings. COGAT says as of mid-day over 
80 trucks have passed through Kerem Shalom, with a target of over 100 
trucks before the crossing closes at 1500. As of 1430, COGAT was not 
able to provide the number of people that have crossed through Erez, 
though at least four crossing permits have been issued. 

7. (SBU) COGAT officials also said that they have yet 
to receive a response from UNRWA on the feasibility of transferring the 
bulk grain at the Karni crossing into 1-ton plastic sacks and moving 
them through Kerem Shalom. COGAT says it is also still investigating 
ways that it can move cooking gas and diesel fuel through Kerem Shalom 
that meet public safety standards. COGAT officials also told EconCouns 
that two planeloads of aid are expected today and tomorrow from Greece, 
Norway and the WHO. However, the COGAT official warned that, due to 
capacity issues, it will take a week and a half to move these goods 
through Kerem Shalom. 

Political Developments
----------------------

8. (C) Prime Minister Olmert, Minister of Defense Barak and 
Foreign Miniter Livni met last night and rejected the possibility of a 
48-hour humanitarian ceasefire as suggested by French Foreign Minister 
Bernard Kouchner. A Foreign Ministry spokesperson called the proposal 
unrealistic because it was a unilateral Israeli ceasefire with no 
mechanism to ensure Hamas ceases rocket fire, smuggling, and other 
terrorist activity. Barak was reportedly in favor of the ceasefire to 
calm the international community, while Olmert and Livni took a harder 
line according to press reports. Nimrod Barkan, head of the MFA 
Political Research Department, told A/DCM on December 31 that Barak's 
primary interest in the 48-hour ceasefire was due to the poor weather 
expected over the next two days. 

9. (U) The full security cabinet met on December 31 to
receive a security briefing and discuss a ground operation. Barak has 
already requested that another 2,500 reservists be activated. During the
meeting, Shin Bet chief Yuval Diskin reportedly said that the 
operations against Hamas infrastructure had been more effective than 
anticipated and that no humanitarian crisis exists in Gaza. 

10. (U) In the press, pundits are divided over whether
Israel should accept a ceasefire or continue to a more-costly ground 
operation. Speculation is also growing over the political motivations of
the Gaza operation. Opposition leader and PM candidate Benjamin 
Netanyahu has so far expressed complete support for the government, 
while the first polls released since the operation began show gains for 
both Labor and Kadima, with Kadima now even with Likud at 29 seats 
apiece. 

11. (SBU) Israeli Arabs: Protests against the Gaza operation
continue in Israeli-Arab and mixed Jewish-Arab towns and
cities. While most of these demonstrations have ended
peacefully, others have resulted in clashes with police or
Jewish counter-protesters. Minor clashes between Arab and
Jewish students at Haifa University have occurred each day
since December 29. The far-left and predominantly Arab Hadash
Party is organizing what it hopes will be a very large
demonstration in Tel Aviv on the evening of January 3. At the
same time, small groups of Israeli-Arab youths continue to
throw stones at cars and block roads throughout the north,
with incidents reported in Uhm al-Fahm, Nazareth, Akko and
dozens of smaller towns. Media reports on December 31 indicate
that police have arrested over 300 Israeli Arabs, a large
portion of them minors, for causing violent disturbances and
disrupting traffic. POL and DAO officers have seen very large
numbers of Israeli police and border police deployed in
visible locations throughout the north since the start of
military operations on December 27.

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Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
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CUNNINGHAM

In Section 2 letters are dropped.