Highlighting by Counterpunch.

Date: 2008-12-29

29/12/08 
S E C R E T SECTION 01 OF 03 
TEL AVIV 002906 
NOFORN SIPDIS E.O. 12958: 
DECL: 12/28/2018 
TAGS: KWBG, MOPS, PREL, PTER, PINR, EAID, EFIN, IS 
SUBJECT: GAZA SITUATION REPORT, DECEMBER 29, 18:00 
REF: JERUSALEM 2295
Classified By: A/DCM Marc Sievers for reasons 1.4  (B/D). 

1. (C) Summary: 
The IDF continued its deployment of ground forces 
around the Gaza periphery on December 29, with elements of at least 
three armored and two infantry brigades taking up positions opposite 
Gaza City and Beit Hanoun. Air strikes against strategic and tactical 
targets continued throughout the day, as did rocket and mortar fire from
the Gaza Strip. One Israeli civilian was killed when a rocket landed in
Ashkelon on the morning of December 29. According to IDF contacts, 63 
truckloads of humanitarian supplies entered Gaza via Kerem Shalom during
the day on December 29, with further deliveries scheduled for December 
30. Israeli political leaders, including FM Livni and MoD Barak, caution
that military operations could continue for weeks, and that the goal is
to change the strategic environment and destroy Hamas' offensive rocket
capabilities. Separately, Bank Hapoalim and Bank Discount announced 
that they will cease providing correspondent banking services to Gaza at
midnight on December 31. End summary. 

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

2. (SBU) The Israeli Air Force (IAF) is continuing its 
strategic campaign against Hamas leadership, personnel and 
infrastructure throughout Gaza. In addition to targets associated with 
the manufacture, storage and deployment of Kassam rockets, the IAF has 
also attacked the Hamas Interior Ministry, Islamic University (which 
contains labs that the GOI says are active in weapons and explosives 
research for Hamas), and a Hamas guest house used for official visitors.
The IDF Spokesperson announced that the office of Hamas PM Ismail 
Haniyeh was attacked overnight (note: speaking on Israeli radio December
29, Deputy Defense Minister Vilnai denied that Haniyeh was personally 
targeted in the airstrike), as were "dozens of other Hamas-related 
targets." Israeli Naval forces also attacked Hamas vessels and coastal 
structures overnight, according to the Spokesperson,s office. In his 
radio interview, Deputy Defense Minister Vilnai also said the IDF has 
high morale, and in contrast to the Second Lebanon War, all levels of 
the military know their task and what is expected of them. Vilnai said 
the operations will last a long time, "perhaps much longer than people 
expect." Asked to comment on a possible ground campaign, he declined to 
answer, saying he did not intend to broadcast to Hamas Israel's military
intentions. 

3. (S/NF) At 16:00 on December 28, the IDF bombed the 
Phiadelphi corridor along the Gaza-Egypt border, destroying 39-40 
smuggling tunnels. No Egyptian border guards were harmed. IDF contacts 
have repeatedly told DATT that the targeting of the tunnels was 
coordinated with Egypt, and that they had passed the coordinates of the 
attack points to the Egyptians to enable them to ensure the safety of 
their border forces. 

4. (SBU) As of 15:00 local December 29, 50 rockets 
have been fired into Israel today from Gaza, according to press reports.
One Israeli was killed and 14-16 wounded when a Grad-type rocket struck
a construction site in Ashkelon during the morning. Two Israelis have 
been killed since the start of operation "Cast Lead" on December 27. On 
December 28, two 122 mm Katyusha rockets struck areas in or near the 
city of Ashdod, in what appears to be the first attack by rockets with a
range in excess of 30 km. 

5. (S/NF) The IDF is continuing its deployment of 
ground forces around the Gaza periphery, although no ground operations 
had been initiated as of 18:00. This morning the IDF closed most areas 
bordering the Gaza Strip to allow for the positioning of armor and 
infantry units. On December 28, DAO officers observed the movement of 
M-109 artillery and support/ammunition vehicles into the vicinity of 
Gaza. Heavy trucks laden with concrete shelters, water storage tanks and
other logistical equipment intended to support ground operations were 
also observed deploying around the Gaza border. DAO also observed the 
movement of Merkava 3 tanks from the 188 Armor Brigade, which is 
normally deployed on the Lebanese border, into the vicinity of Gaza. 

6. (S/NF) During a subsequent observation mission this
morning, DAO officers observed a further significant increase in the 
IDF ground forces presence around Gaza. Elements of three armor 
brigades, including artillery batteries and Merkava 3 and 4 tanks, and 
two infantry brigades were deployed opposite Gaza City and Beit Hanoun. 

TEL AVIV 00002906 002 OF 003

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

7. (U) During a special Knesset session to discuss the 
military operations this morning, DefMin Barak called the operation an 
"all-out war against Hamas" and said it would be "widened and deepened 
as is necessary." He said the security services had spent "months" 
preparing for the operation, and would carry it out until Hamas is not 
longer capable of launching rockets at Israeli towns. While somewhat 
less hawkish, FM Livni,s remarks to the Knesset made clear that Israel 
expects the international community to blame Hamas, not Israel, for the 
current hostilities and the plight of Palestinian civilians in Gaza. 

8. (C) During a briefing in Sderot for the diplomatic 
corps on December 28, Livni and MoD Pol-Mil Director Amos Gilad stressed
that Israel needs the support of the international community for an 
extended military operation designed not to overthrow the Hamas regime 
in Gaza, but to change the strategic environment by force. Israel will 
not tolerate continued rocket attacks on its citizens and the operation 
will continue for weeks. Livni said if the international community 
forces Israel to stop too soon, Israel will have to do it all over in 
the near future. She expressed understanding of President Abbas, dilemma
and pressure on him to condemn Israeli actions, but she noted that even
he had blamed Hamas while in Cairo, and she asked why the rest of the 
international community was finding it hard to do the same. "This is the
minimum we expect of you," she told the assembled diplomats. Livni also
said the Gaza operation was in the longer run interests of peace with 
the Palestinians since Israel could not sign a peace agreement with a 
Palestinian Authority that did not have control over Gaza. 

9. (C) Gilad said he attached high priority to 
cooperating with UNRWA, WFP, and Arab and Muslim states to ensure a 
steady flow of humanitarian relief. He said the objective is to force an
end to the rocket fire and Israel will continue until that goal is 
reached. He reiterated comments by other political leaders that ground 
operations are an option to be used if necessary. Gilad emphasized that 
the targets have been only Hamas offices, military installations and 
rocket workshops and stockpiles. He said Israel is using sophisticated 
means to avoid civilian casualties but some are unavoidable. Asked if 
Israel was concerned about Hizballah opening a second front from the 
north, Gilad said the IDF is on high alert in the north and is "ready 
for all eventualities." Gilad dismissed the possibility that the 
fighting in Gaza could touch off a third Intifada in the West Bank, 
saying that "all of our intelligence assessments are that the PA is in 
full control in the West Bank and has no interest in allowing a third 
Intifada." 

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

10. (SBU) The MFA and the IDF,s Coordinator for Government 
Activities in the Territories (COGAT) say they are prepared, to the 
extent possible given ongoing military operations, to facilitate the 
passage of all international humanitarian assistance destined for Gaza. 
According to COGAT, 23 trucks crossed into Gaza via the Kerem Shalom 
crossing on December 28, with 50 trucks scheduled for delivery December 
29. As of 17:00 on December 29, 63 trucks had crossed into Gaza, 
according to an IDF contact at Kerem Shalom. The crossing was scheduled 
to remain open until 16:30 but closed late in order to get through an 
urgently needed donation of 600-1000 units of blood from Jordan. The IDF
contact confirmed delivery of five ambulances from the PA, but said the
Turkish ambulances, which were supposedly off-loaded in Ashdod, had not
been found as of closing time. 

11. (SBU) According to the IDF source, the 63 trucks 
included: -- World Food Program: 15 trucks (450 metric tons, including 
20 metric tons funded by USAID) of wheat flour; -- UNWRA: 4 trucks of 
medical supplies and 10 trucks of food (rice, milk powder, sugar); -- 
ICRC: 3 trucks of medical supplies and 5 ambulances transferred from the
West Bank; -- Jordan: 1 truck of 1000 liters blood products, 12 truck 
of food and medical supplies; -- Egypt: 4 trucks of food; -- Doctors 
Without Borders: 1 truck of medical supplies; -- CARE: 1 truck of 
medical supplies; 

12. (SBU) The IDF expects 50-60 trucks at Kerem Shalom
again tomorrow, including five trucks of medical supplies for the ICRC.

TEL AVIV 00002906 003 OF 003 

13. (SBU) Nahal Oz and Karni: As of 11:00, the MFA 
reported that plans to open the Nahal Oz terminal for cooking gas 
transfer was cancelled due to the ongoing military operations near the 
terminal. COGAT is planning to try again December 30. Plans to transfer 
40 trucks of grain through the Karni conveyor terminal were also 
cancelled, with COGAT examining the possibility of rerouting the grain 
to Kerem Shalom. 

14. (SBU) Erez: COGAT source confirmed several 
emergency crossings at Erez, including a number of UN staff entering 
Gaza and urgent medical cases exiting Gaza. As of 17:00, Erez was being 
held open waiting for the arrival of an ambulance to transport an 
injured individual to the West Bank for medical treatment. The Consular 
Section is coordinating with COGAT and Consulate General Jerusalem on 
any potential evacuations of Amcits through Erez, but COGAT knew of none
seeking exit on December 29. 

15. (SBU) Medical Supplies: The MFA argued today that 
inefficiencies on the part of the Palestinian Authority,s (PA) Ministry 
of Health (MOH), not the GOI, are responsible for the delay of medical 
supplies into Gaza. According to the MFA, the PA took responsibility for
the provision of healthcare products to Gaza as of August. Since that 
time, it has become the responsibility of the PA MOH to gather, package,
and transfer medical supplies to UNRWA for delivery to recipients in 
Gaza. Due to delays in preparing supplies, the PA MOH has not been able 
to deliver enough goods to UNRWA to keep pace with demand, the MFA said.
The MFA emphasized that the GOI stood ready to approve for entrance any
medical supplies that donors or the PA were prepared to send to Gaza. 
COGAT confirmed that the PA had advised of 30 truckloads of medical 
supplies slated to arrive at Kerem Shalom on December 29. However, only 
five had arrived before the crossing closed, and COGAT was told by PA 
officials that no more would be coming. 

16. (SBU) MFA contacts said they were now working with
the World Health Organization (WHO) to improve the supply of medical 
goods destined for Gaza. The MFA understands that the WHO has requested 
additional donations of supplies from its members and continues to 
coordinate its actions with the PA MOH. The MFA believes the WHO had 
underestimated the number of injured that would result from the current 
action and is now ramping up operations to meet demand as quickly as 
possible. The Israeli Ministry of Health has offered to send emergency 
medical supplies as well, and is coordinating with the MFA and COGAT to 
determine whether its assistance is required. 

Other
-----

17. (C) Gaza Cash: Bank Hapoalim and Bank 
Discount, the only two Israeli banks that maintain correspondent 
relationships with Palestinian banks, report that they plan to 
permanently discontinue provision of services to Gaza branches as of 
midnight on December 31st. Banking contacts have informed emboffs that 
Stanley Fischer, Governor of the Bank of Israel, has not requested that 
the banks extend their deadlines as he did in November. Without such a 
call from Fischer by close-of-business today, emboffs believe that Bank 
Hapoalim and Bank Discount will likely follow through on their plan as 
announced. Embassy contacts at the banks and in Fischer,s office have 
agreed to keep emboffs appraised of any changes.

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CUNNINGHAM
30/12/08 from Jerusalem