Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 290 - 299)

THURSDAY 29 MARCH 2007

HIS EXCELLENCY DR ODED ERAN AND MRS TALYA LADOR-FRESHER

  Q290  Chairman: Your Excellency, we are very grateful to you for coming to meet the Committee today and in particular for having come from Brussels. We know of your very considerable experience both in dealing with matters of the European Union and indeed in dealing with matters in your own region. We would be very grateful if perhaps you would introduce yourself for the record and, if you have an introductory statement, you might like to make it now. Otherwise we will move to our questions. The Committee which is carrying out this inquiry on the European Union and the Middle East is very pleased that we have been joined by one of our colleagues from the House, Lord Janner, today, who is not a Member of the Committee but has, as you know, a very considerable interest in these matters.

  His Excellency Dr Eran: I would like to open by expressing sympathy and understanding for the situation of the hijacked sailors who are kept in Iran. We can very closely associate ourselves with this situation. My name is Oded Eran. I am the Israeli Ambassador to the EU covering NATO as well. For the sake of this discussion, I have spent almost 20 years of my life trying to bring peace to the Middle East. I have been the Israeli Ambassador for Jordan. I have been dealing with economic affairs concentrating on the regional cooperation in the Middle East and when I retire I hope to continue to do this. I do not have an introductory statement because I guess you wish to ask me questions. I will reserve all I would have said in an introductory statement for answers to your questions.

  Q291  Chairman: Thank you very much indeed, your Excellency. We are taking a note of this meeting and we will be able to use it as part of the evidence when we come to draw up our report but if at any stage you were prepared to go off the record perhaps you could let us know and we will proceed for a short period on that basis. That is an option which you have available. Can I ask you about your own views of the current situation regarding the Middle East Peace Process and in particular the policy which you expect your government to take to reinvigorate the process and help to facilitate the economic situation for Palestine?

  His Excellency Dr Eran: Obviously as we speak there are efforts to revive the peace process. The Secretary of State of the United States was there in the last few days. The Arab League is meeting as we speak to discuss, among other issues, what is known as the Arab League Initiative or the Saudi Initiative. One of the results of the visit of the Secretary of State is the biweekly meetings between the Palestinian President, Mahmoud Abbas, and the Israeli Prime Minister, Ehud Olmert. In my view, it would be very difficult at this juncture to revive the efforts to reach a comprehensive peace process. The gaps in position are still very wide and we find ourselves in a very peculiar situation whereby there is a will but not necessarily the political power to do this. Let me dwell for a second on the situation on the Palestinian side. We have a peculiar situation whereby the President of the Palestinian Authority, Mahmoud Abbas, has committed himself to the road map and to the two state solution. On the other hand, when you look at the platform of the Palestinian government, you would not find any reference to the basic concept on which any peace process can be predicated and that is the two state solution. Not only that but there are references and code words which indicate that this particular government is not renouncing violence and terror as a means of getting the national aspirations of the Palestinian people. There are other issues that could be obstacles to the attainment of the peace process. For example, the platform says that every agreement that would be reached has to be submitted to a referendum of Palestinians in and outside the Palestinian territories, which is almost a guarantee that it will not get the approval of the Palestinians. Therefore, it is a very strange situation where, on the one hand, the President is willing to discuss comprehensive peace on the two state solution basis while his own government does not have it on the platform. If I may add a personal note here, our situation on the Israeli side is also politically quite difficult though the government enjoys a wide majority and the bulk of the Israeli population has long accepted the idea of the two state solution. Currently the government is facing serious domestic problems which may affect its ability to go into comprehensive, full scale negotiations. Therefore, we should all be very careful not to create the illusion that there is a possibility to jump start the comprehensive peace process negotiations. We should concentrate on what is attainable, what is feasible, and create the circumstance and the environment from which then, once the political circumstances allow, we can then turn to the attempt to find a comprehensive solution. This brings me to the second part of your question: what can be done and what can my government do? Currently, the socio-economic situation on the Palestinian side has reached dangerous dimensions. In the international community—in the international community I also include the Arab states—and Israel, all of us have to pay attention and to make a serious effort to alleviate the economic situation there. We can increase the economic assistance and especially the economic assistance directed to long term, economic recovery through the mechanisms which exist and which can be improved. As you all know, there is the Temporary International Mechanism and there are discussions to try and improve and increase its scope. We can work opposite the President, Mr Mahmoud Abbas, and use the mechanism attached to the presidency to try and reach an understanding of how to do it. As far as the Israeli government is concerned, we can of course improve the situation in the passages, both for people and goods. We can find a way to transfer more of the tax money to the presidency, provided that the Palestinian presidency can find a way to monitor the disbursement of the money so that the money does not go to any terror infrastructure. We can under certain circumstances increase the number of Palestinian labourers inside Israel which is a very important factor. Almost a third of the Palestinian GNP depends on labour in Israel. Currently, the levels of unemployment are really reaching dangerous dimensions. Let me give you an illustration. Every year between 50,000 to 60,000 Palestinians are added to the labour market. I do not believe that there are even 10% of new jobs created annually to absorb some of these new labour workers. Obviously a lot can be done and should be done in a concerted effort by the international community, including Israel.

  Q292  Lord Anderson of Swansea: At the time of the last Israeli elections, the conventional wisdom was that there would be further unilateral moves on the West Bank as there have been in Lebanon in 2000 and Gaza in 2005. Has that policy by Israel been totally abandoned now?

  His Excellency Dr Eran: This is a very important question because the idea of the unilateral disengagement came at a juncture where there was very little hope to revive bilateral talks with the Palestinians. The then Prime Minister, Sharon, took this decision, almost personally, to go for a unilateral disengagement from Gaza which was accomplished. There were many in Israel who questioned the wisdom of the policy because the argument was that it is much better to reach a bilateral agreement with your adversary or the other side, which would have created a better understanding and atmosphere, but the policy had been carried out. However, two important things happened. The violence and the terror continued from Gaza. There is daily shelling of Israeli towns and rockets launched from the Gaza Strip. Gaza became a powder keg. There is a lot of smuggling of weapons and explosives from Egypt into Gaza. What is called the Philadelphia Axis, which is the border between Gaza and Egypt, became very porous, more than it was before. Before there were tunnels and now it is almost wide open. Many in Israel challenged the premise of what is the use of taking unilateral actions if this is the "reward" for the return on the policy. Secondly, there was also quite a wide criticism of the way the evacuated settlers were dealt with by the Israeli government. Then Prime Minister Sharon became incapacitated and the whole idea evaporated to a large extent. I cannot say that it will never come back in one way or another but for the time being the whole idea has been very much shelved. I do not see that there will be in the foreseeable future a major repetition of this exercise.

  Q293  Lord Hannay of Chiswick: Could I ask one question about the first part of your reply which related to the Middle East Peace Process and one about the second part which related to the operations within the Palestinian Authority? On the Middle East Peace Process, I am sure you are familiar with the phrase "political horizons" which seems to have become rather fashionable in recent times and which is taken I think by most of the people who use it as a shorthand way of describing the final status issues, Jerusalem, borders, refugees et cetera. Was I right in thinking that you were expressing the view that even the discussion of these political horizons is premature and impossible to undertake at this stage because, if so, there is surely a rather sharp contrast in the views of the American Secretary of State, the European Union, the Arab Quartet and a lot of other people, who have all expressed a strong desire to bring within the scope of any future discussions the "political horizons". Perhaps you could take that a little further. I was not absolutely sure whether what you were saying was that you did not think it could be discussed with certain people or whether it could not be discussed at all. Secondly, on what you said about the situation in the Palestinian territories, which you described in very dramatic terms, I thought quite correctly, you said there were certain things that could be done to improve the situation. I am not sure I picked up any reference to the retention of taxes and tariffs which Israel holds and which basically belong to the Palestinians, but which have not been released to them. Is that also part of a feasible way forward to help them improve their economic situation?

  His Excellency Dr Eran: Let me deal with the last part of your question. We are not challenging the fact that the money is Palestinian money. We never claimed the money to be Israeli money. What we are saying is that we need to make sure that the money goes to positive, constructive purposes. That was not the case before. When the last Palestinian government after the elections in January 2006 came to power, we stopped the flow of taxes to the Palestinian government with the exception of the $100 million and 30 million shekels which have been passed in recent months to Mahmoud Abbas. Some of the $100 million apparently found its way into purposes we did not wish to see the money going to. In principle, the Israeli government would be willing to continue the flow of the money to the Palestinian Authority provided that they could create a clear cut mechanism monitoring where the money goes. On the issue that you raise, first of all, we said and we continue to say that we will talk to Mahmoud Abbas and any camp on the Palestinian side which accepts the road map and the three benchmarks created by the Quartet. That is obvious. Let me now express my own views on the issue of the political horizons. You are absolutely right. When one speaks about the political horizons, one speaks about the three major issues which were and will be the major subjects for negotiation and the creation of the two state solution, two states as a comprehensive solution to the Israeli Palestinian conflict. Each one of them as we all know—and I know from my own experience as a participant in the Camp David talks—is sufficient to derail the whole process. On each one of them we have differences of opinion between us and any moderate Palestinian counterpart, on Jerusalem, on refugees, on borders. It is possible to discuss them and to try and narrow the gaps which exist but my argument was that I am not so sure where they lead. Let us say that we have these biweekly meetings. By the way, the agreement now is to discuss current issues between Mahmoud Abbas and Olmert in these meetings rather than long term issues. You can create an understanding on each one of them but they are meaningless in the sense that they do not create an agreement. Certainly they do not create any legal understanding or a binding document. I come back to the issue which I raised in my opening answer. Let us say that tomorrow morning the two sides in the discussions about the political horizons reach some sort of an understanding. I do not believe that Mahmoud Abbas can deliver on that because there is a situation where one camp on the Palestinian side believes that the solution is the two state solution, of course solving the three major issues, and there is one camp which does not believe that this is the solution. This camp happens to be the majority, at least as far as the results of the elections in 2006 indicate. There is even some danger in creating the illusion that they can bring a solution. Under the current circumstances, I believe the continuation of the international pressure can create a situation where the government, not the party—we all know that parties do not change ideologies overnight—can change ideologies. Therefore, I am not interested in what is the ideology of Hamas; I am interested in what the platform of the government is. I say that the Palestinian government may change its position on this particular issue under the pressure of the international community and the Arab League. I believe that pressure is exerted by all these bodies on the Palestinian government to modify the terms. This will be the moment when they do change and they do accept the basic notion of the two state solution. If they accepted the road map, in my view, that would be sufficient to go into the next stage of discussing final issues. A possible discussion on the political horizons may serve a positive purpose but, on the other hand, it could create illusions which I believe right now are quite dangerous, given the fact that even if you reach an understanding on them you cannot translate it into a politically legal binding document in my view.

  Q294  Lord Lea of Crondall: Surely the Arab Quartet et cetera and Hamas are partly what all this is about, are they not, to make sure that the credibility of the whole of the Palestinian government can become more of a negotiating partner?

  His Excellency Dr Eran: What happens on the Arab side is very important and interesting. The Arab League initiative from 2003 is a step in the right direction but a step. When you look at the document from our point of view, it has the one important element which is the recognition of the state of Israel and the willingness, assuming solution of the three major issues, to end the conflict, something, by the way which Arafat failed all along the negotiations to say—that if these issues are solved that will be the end of the conflict. I never heard him say that. Therefore, these two elements in the Arab initiative are very important. However, there are at least three major issues in which there is a wide gap between what the Arabs are agreeing and what the Israelis, if I can generalise, are willing to offer. On the issue of refugees, for example, it says that the solution should be based on UN resolution 194. I do not know any Israeli government of any colour which will accept that. The Arab initiative speaks about the full return to the 1967 line and I do not know of any other Israeli government which will accept it. I would submit, as a side remark, just think about it. If Israel decided tomorrow morning to go back to the 1967 lines, this would be detrimental to the Palestinian state because in 1967 there was no connection between the West Bank and Gaza. Gaza was Egypt; the West Bank was Jordan. If we go back to the 1967 line, this state would be divided. There was no connection between these two territories before 1967. To give you another example, everyone speaks about a port in Gaza which to my mind is ludicrous, economically speaking. Gaza is a small territory the size of a handkerchief with the highest density of population in the world or probably very close to the highest. They do not have the space to have a serious port which would be the solution and my personal view, having dealt with this issue for years, is to ask Israel to have a semi or fully autonomous dock in the nearby Ashdod port with a direct 12 kilometres of railway to Gaza and let the Palestinians run it from A to Z. That is not 1967. That is the second issue. It is true that the then Prime Minister, Barack, was willing to discuss the dividing of Jerusalem. The Arab League says the eastern side of Jerusalem should be the capital. This is another bone of contention. We need to see this and declare that there are positive elements in the Arab League initiative but that elements in it are not the most desired solution, as far as we see it. What is more important is that it is obvious that the moderate camp in the Arab world is now trying to convince the Hamas government to go further. The head of Hamas, Mashal, has visited Riyadh several times in the recent few weeks obviously for more than just drinking tea. We should allow time and allow these efforts to bear fruit. I think Hamas begins to understand the need to face these issues. There is a lot of criticism inside the Palestinian territories against the performance of the Hamas government ever since January 2006. Therefore, in this case, the pressure may bear fruit but we should give it time. Israel should contribute its part by actively participating in the international effort to rehabilitate the Palestinian economy. There is a lot to be done even if you cannot reach an agreement on the comprehensive solution issues.

  Q295  Lord Crickhowell: Can I move to the third question which is the opportunities and risks posed by the formation of the Palestinian National Unity Government? You have addressed a good many of the issues already there. The Israeli government has rejected the National Unity Government's guidelines as falling short of a full acceptance. You have indicated that even now there has been some movement and you have pointed out that governments can develop and change their position even if the political parties behind them do not do so. What in concrete terms would provide a sufficient guarantee to the Israeli government to lift its boycott of the administration?

  His Excellency Dr Eran: Like the international Quartet, we accept what they asked for as benchmarks. I do not want to call them conditions because I am not sure that the Quartet itself would call them conditions. Therefore I would use the word "benchmarks" although I would very much like to see them as conditions for the continuation of the international aid directed to the government. They speak about the three conditions: renunciation of terror and violence, the recognition of Israel's right to exist and acceptance of previous agreements signed by the PLO. What the Palestinian government has to do is to say very simply, "We accept the road map" because the road map ipso facto contains all these three conditions. If you accept the two state solution which is the motto of the road map, you accept Israel's right to exist. When you go through the first phase of the road map you accept the renunciation of terror and violence. If you accept the road map you accept all other agreements. The three conditions in my view are what the government has to say they accept. Then we can continue to cooperate with this government and the international community can continue to cooperate with this government. I wish to see the change in the Hamas doctrine but what matters is what the government says, not what one leader of a party or another says.

  Q296  Lord Crickhowell: Jumping from the previous position to the clear cut position that you want may be difficult for them. Prime Minister Olmert has welcomed the probability of joint meetings between the Quartet and the Arab grouping and has I believe said that he would be happy to attend. Is it not quite likely that what will happen is that the form of words will be found in such a joint meeting to which the Hamas government would find it easy or possible to adhere, pressed by their Arab neighbours particularly, which may not go the whole way but which will at least move the process forward? It may be difficult for them to jump the whole thing in the way that Israel and the Quartet want them to. Is it not at least a hopeful possibility that we will be getting on to a track of changing the Hamas government's position that will take us forward?

  His Excellency Dr Eran: You put your finger on a very important issue because many people in Europe are saying the very fact that there is a mixed government—it is not black and white any more; it is sort of grey—should bring us Europeans to start a dialogue with the aim of convincing the government and Hamas to accept what is required from them by the international community and Israel. Against that there is the argument that the pressures which were exerted by the international community, Israel and in a different way the Arab league are a better way and eventually it will bring the desired change. (There followed a discussion off the record) If you remove the pressure, what incentive does Hamas have to change the policy? The money will flow now. The discussions will be held. Why would they change their ideology, practices, doctrines and what have you? I believe that what we need to do is to be careful not to punish the Palestinian people when we apply this policy. We have to make sure that, as best we can—it is not very easy—that the pressure is applied on the government and mostly on the Hamas part of it, to channel all our efforts, activities and money to the improvement of the situation of the Palestinian people. It is a very sophisticated line of action. In societies like the Palestinian society, most of the activities are not carried out by the private sector; they are carried out by the government and this is why, when the team was created, Israel was informally consulted and we said, "Yes, pass the money to the health and education sectors", although the money went through the government.

  Q297  Lord Chidgey: The question Lord Crickhowell asked, if I have this right, is what would provide a sufficient guarantee to the Israeli government. Am I right in assuming that the answer from the Israeli government is and is only acceptance of the road map because if that is the case, with all the other bits going round the corners, we are asking the Palestinians to capitulate before negotiations start. It does not happen. We only have to look at Northern Ireland and how long that has taken to get the two sides to come to an agreement because of the sensitivities, because of their positions, because of their need to get security on all sides. That is the real world. I would not want to think that Israel's position was: accept the road map and that is it. There must be more. There must be a process.

  His Excellency Dr Eran: Why should there be more? We are not asking for more. It was done by the President of the Palestinian Authority. He accepts the road map. He does not say, "I do not negotiate on any other basis." We are not asking for any capitulation and nor does the international community. What they are saying is when you, Israel and the Palestinians, go to the negotiating table you need a basic agreement on where you want to get. Where we and the international community and the Arab League want to get to is the two state solution. It so happens that when you look at the platform of the current Palestinian government there is no reference to it. On the contrary, everything points to them not accepting it. Let us say that tomorrow morning we start the negotiations. Israel forgets about the road map and the three conditions. The Palestinian side says, "We have to start from the point of view whether you can exist in the solution" long before we get into the issue of where is the Palestinian capital or where exactly are the borders. Who says there will be borders?

  Q298  Baroness Symons of Vernham Dean: I am a little perplexed about this too because of course there was a Palestinian government that did accept the road map. Neither the Palestinian government nor the Israeli government fulfilled phase one of the road map. The Israeli government went on building the settlements and the outposts. The security wall went up and the Palestinians continued to send Qassam rockets into Israel. Both sides failed on the road map. When you now say that all we need is the road map, the evidence is that when you had that it did not work and there was stalemate. I find it rather hard to understand why the road map is now your only way through because you had it and nobody acted on it.

  His Excellency Dr Eran: It is true that the first phase was very lacking in implementation. I am not so sure that I would apportion the blame equally on the lack of implementation of the first stage of the road map. There are several issues which are not necessarily pertaining to the road map. On the issue of the illegal settlements, the Israeli government did take responsibility for removing them and I can only express the hope that the government will implement its decisions on this issue. Secondly, the fence has if anything helped the chances for negotiations with the Palestinians on any issue. The fence has reduced dramatically the number of casualties on the Israeli side which enables us to look at the possibility of negotiations with the Palestinians removed from the pressures from the results of acts of terror. The fence is not a political statement. It is not an attempt to fix the final border at any particular point. There are many instances where the fence corresponds to the 1967 line. Therefore, the issue of the fence has very little to do with the road map. In spite of your remark on the implementation of the road map, there is no other common basis between us and the Palestinians and indeed accepted by the international community on which we can negotiate. This is the outline. It is not a solution. I do not want to create any illusion. It is not. It does not say what should be the solution over Jerusalem or refugees. It just outlines how to get there. Regardless of the flaws in implementation in the first phase, it remains the only acceptable basis on which one can negotiate with the other side.

  Q299  Lord Hannay of Chiswick: Your answer about the wall takes us on to the area which seems to me to be rather important—I would like to hear your comment on this—which is the need to have a process, whether it is to talk about the short term issues in the first and second phase of the road map or about the political horizons, which cannot be derailed or overthrown by acts of violence by people who are outside the process, because it is perfectly clear that, even if the coalition between the Palestinian Authority with Hamas members accepted the three criteria or conditions, whatever one wants to call them, or benchmarks, there will still be people outside the process who will wish to use violence to prevent the process proceeding. Is it now accepted or could it be accepted on the Israeli side that a situation where these talks are going ahead needs to be sustained as, for example, we in this country sustained the process in Northern Ireland, even if people outside it try to use violence to prevent the process?

  His Excellency Dr Eran: It was the late Prime Minister Rabin who coined the phrase, "We will negotiate if there is no terror and we will deal with terrorists if there are no negotiations." This is a statement which will guide all future governments in dealing with the issue of negotiations. What we always asked the other side to do—that is to say, the Palestinian government, the Palestinian power—was to make an effort to stop the terror. We realise that every government may not get 100% success but at least it invests 100% in trying to stop the violence and terror. This is what we expected and we continue to expect from any Palestinian with whom we negotiate. I fully accept the premise in your question that one has to negotiate assuming that the political circumstances are right for this discussion. I want to add a personal statement. As someone who participated in the failed attempt (in Camp David, 2000), I am not so sure that we can afford another failed attempt. The consequences of another failed attempt are different and could be much more horrendous than the consequences of the first failed attempt in 2000. Therefore, I would like to see a very well detailed, structured attempt in which we know almost to the last detail what will be the outcome before we plunge into it.


 
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