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Cablegate: (U) Request for Embassy London to Deliver Response

VZCZCXYZ0000
OO RUEHWEB

DE RUEHC #0090 3561631
ZNR UUUUU ZZH
O R 221625Z DEC 09
FM SECSTATE WASHDC
TO RUEHLO/AMEMBASSY LONDON IMMEDIATE 8462
INFO RUEHTV/AMEMBASSY TEL AVIV 0212
RUEHJM/AMCONSUL JERUSALEM 6359

UNCLAS STATE 130090

SIPDIS

E.O. 12958: N/A
TAGS: EAID OPDC OVIP PGOV PREL WBG EU IS
SUBJECT: (U) REQUEST FOR EMBASSY LONDON TO DELIVER RESPONSE
FROM SECRETARY CLINTON TO FOREIGN SECRETARY DAVID MILIBAND:
SUPPORT FOR THE PALESTINIAN AUTHORITY

1. This is an action request. Please see paragraph two.

2. Background and Action Request: On November 24, the
Secretary sent letters to countries that participate in
the Ad Hoc Liaison Committee - the primary coordinating
mechanism for foreign donor assistance to the Palestinian
Authority (PA) - asking that they take "extraordinary
measures" to help the PA meet its end-of-year budget
deficit. Foreign Secretary Miliband responded on December 8
by announcing that the United Kingdom will allocate GBP 11.5
million (approximately $19 million) to the PA this month. If
disbursed in this calendar year, the new assistance would bring
the UK'stotal contribution to budget support in 2009 to almost
$48 million. The Department requests that Embassy London deliver
Secretary Clinton's response to the Foreign Secretary included
in paragraph three. There will be no signed original to follow.

3. Begin text of letter:

Dear Foreign Secretary:

Thank you for your letter dated December 8 informing us
that the United Kingdom will allocate an additional GBP
11.5 million in emergency budget support to the Palestinian
Authority (PA) this year. Your timely action demonstrates
clear support for President Abbas and Prime Minister Fayyad
at a critical time in our efforts to relaunch negotiations
toward the establishment of a Palestinian state and the end
of the Israeli-Palestinian conflict.

I am pleased to announce that on December 14, the United States
completed the transfer of an additional $75 million in budget
support to the PA as an advance on our projected contribution
of budget support in fiscal year 2010. With the support of
Congress, we decided to frontload part of our assistance in
response to a direct appeal from Prime Minister Fayyad to help
meet his end-of-year budget deficit. We will continue to press
other donors to make good on or increase their commitments of
budget support to the PA this year, and we appreciate your help
in leveraging additional support from European donors.

I welcome your efforts to establish a memorandum of
understanding with the PA regarding the UK's 2010
assistance. As you rightly suggest, we must ensure that
donor assistance becomes more transparent and consistent
so that the PA can escape the near monthly cycle of fiscal
crisis and have sufficient liquidity to pursue its
institutional and economic development agenda. This has
been one of our core messages to donors and should be a
priority item on the agenda of the next Ad Hoc Liaison
Committee meeting. What we seek with our latest
contribution of budget support, and what we will continue
to do through all of our assistance efforts, is to ensure
that the PA has the tools and the resources necessary to
build the institutions of a state that will serve the
Palestinian people most effectively.

Thank you again for your leadership,

Sincerely yours,


Hillary Rodham Clinton
End text.
CLINTON

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