PALESTINE LIBERATION ORGANIZATION Negotiations Affairs Department Negotiations Support Unit

1. Beyond ‘Disengagement’ Gaza, Settlements, and the Wall PALESTINE LIBERATION ORGANIZATIONNegotiations Affairs DepartmentNegotiations Support Unit

2. Today’s Presentation • PART 1: Evacuation and the PA •  PA Achievements •  Challengesand OutstandingProblems • PART 2: Undermining the Bush Vision  The Wall & Israeli Settlement Expansion Focus on Jerusalem PART 3:The Way Forward

3. PART I Evacuation and the PA Achievements and Challenges

4. Strong Palestinian Performance • Intensive preparations in lead-up to withdrawal • Withdrawal of army and settlers proceeded peacefully, without disruption • Palestinian unity behind one government voice • Ongoing coordination on political and technical levels • PA implementing plans for economic recovery Greenhouse Gush Katif

5. Economic Update • Fragile Economy • Since 2000, average incomes declined by 1/3 • Unemployment rate is 35% in Gaza (27% overall) • Labor exports to Israel down by 68% since 2000 • Poverty rate projected at 76% in Gaza (62% overall) by 2008 • Restricted Movement of Goods • Border crossings: dramatic increase in shipping costs • Truck traffic down from 500/day to 35 day • Exports from OPT dropped 35% in past 4 years • 75% of businesses function at 1/3 of previous capacity

6. Maintaining Momentum Access to World Movement to/thru Israel Internal Movement (GS-WB) Economic Recovery & Political Stability

7. Access to the Rest of the World • Rafah • PA improving infrastructure, systems, capacity • Movement of people through Rafah is top priority • Outgoing goods to move through Rafah • Temporary movement of imports through Kerem Shalom • Airport/Seaport • Construction on both to begin immediately • Donor funding needed

8. Movement to and through Israel • Crossing Points • Months of meetings with minimal progress • No agreement on service standards, monitoring, dispute resolution, movement of agriculture • Wolfensohn proposed continuous session to complete process. No response from Israel. Karni Crossing Point (Gaza District) • Safe Passage/Territorial Link • Safe Passage critical for economic recovery & political unity • Israel willing to discuss “pilot” convoy system • World Bank/USAID comprehensive study for territorial link

9. Internal Movement • Internal Closures in West Bank • Wolfensohn and World Bank: freeing up of internal movement essential to economic revival • Comprehensive lifting of internal closure needed, including flying checkpoints • Administrative Status of WB • Lifting closures in and out of evacuated areas • Evacuated areas to be designated “Area A”

10. Economic Renewal • Trade Regime • Economic shift from labor exports to export of goods • Legislative and regulatory reforms on trade and business laws • Generous capital financing and short-term emergency budget • Job Creation • Increase labor exports in short-term • Investments in reconstruction projects • Water • Water crisis requires immediate strategic initiative for equitable redistribution of water • Regional desalination facility in Gaza is critical

11. PART II Undermining the Bush VisionIsraeli Settlements and The Wall

12. Wall Update (October 2005) The Wall remains an integral part of Israel’s settlement infrastructure. People 242,000 (10%) Palestinians isolated west of Wall: 284,000 (12%) Palestinians separated from their land: Land WB land outside (west) of Wall: 9.5 % Settlement blocs east of Wall: 8.0 % Jordan Valley settlement control: 28.5 % Area remaining for Palestinians: 54.0 % The Wall and Closure Regimes restrict Palestinian movement and development to benefit illegal settlements.

13. Wall Update (October 2005) Permanent Infrastructure • Israel continues to invest millions in large-scale permanent infrastructure at the Wall, such as industrial estates and crossing terminals. Qalandia Checkpoint (Jerusalem District)

14. Wall Update (October 2005) Closed Zone Closed Zone & Permit Regime • Palestinians require ‘access’ / ‘residency’ permits. • Wall gate openings unreliable, highly restrictive. • Israel treating Closed Zone as Israeli territory. Khirbet Jubara (Tulkarem District) 90-95 % of permit rejections are based on ‘land ownership’ rather than ‘security’ grounds.

15. The Wall & Settlement Expansion Un-Natural Growth: Zufin 1500 units • 6,391 new settler units approved for 2005 Elkana 90 units Etz Efraim 240 units Giv’at Zeev 132 units Giva’ Binyamin 200 units Mod’in ‘Illit 1500 units • 3,500 units approved for E-1 / Ma‘ale Adumim E-1 Plan 3500 units Har Adar 70 units • Approved plans to double Jordan Valleysettler population. Ma‘ale Adumim 2100 units Betar ‘Illit 500 units Har Gilo 35 units Alon Shevut 35 units There are more Israeli settlers in the OPT today than before ‘disengagement’.

16. The Wall in East Jerusalem • Separates Palestinians from Palestinians. • Isolates East Jerusalem from rest of West Bank. • Reinforces Israeli settlements, integrates them into Israel. There can be no Palestinian state without its capital, East Jerusalem.

17. Settlement Expansion: Ma’ale Adumim 11-aug-04 27-sep-05 “Nofei Sela” “Area 7” “Mitzpe Nevo”

18. Settlement Expansion: Ma’ale Adumim 11-apr-05 “Nofei Sela”

19. Settlement Expansion: “E-1” Area

20. Settlement Expansion: “E-1” Area

21. SUMMARY • Despite Palestinian coordination, Gaza remains closed with minimal results on movement/access. • The Wall, Settlements, and Closure regimes undermine Palestinian viability and territorial contiguity. • Israel is using the Wall to sever Palestinian E. Jerusalem from the West Bank and impose a final status outcome. • Political process is needed to give Palestinians hope and reinstate bi-lateralism over unilateralism.