"Arafat’s death has changed little in the financial administration of
the Palestinian Authority. And the back door for financing terrorists
from such transactions as Palestinian gas exports to Egypt is wide
open."

http://www.debka.com/article.php?aid=1051

Sharon Grants Egypt Military Rewards in Sinai, Is Outmaneuvered by a
Secret UK-Egyptian-Palestinian Gas Transaction

DEBKAfile Exclusive Report

July 5, 2005, 2:53 PM (GMT+02:00)

In the middle of last week’s Gush Katif clashes between Israeli
soldiers and anti-evacuation activists, a Hizballah commando raid on
northern Israel and traffic blockages by more protesters, prime
minister Ariel Sharon’s emissaries quietly wound up
negotiations on a
military protocol with Egypt. This protocol, under challenge now by
Israeli lawmakers, formally provides for the deployment of 750
Egyptian border police along the southern Gaza Philadelphi border
route to enable the withdrawal of Israeli troops and civilians from
the Gaza Strip.

But, according to DEBKAfile’s military sources, the tacit part
of the
deal offers Cairo much more than a military foothold along this 14-km
border strip. Against the recommendations of the Israeli high command
and military intelligence AMAN, the Sharon government has agreed to
Egypt’s deployment of commando troops, APCS equipped with
night-vision
equipment and helicopters along the entire border. Moreover, the
Egyptian navy will be allowed to use the northern Sinai Mediterranean
port of El Arish as a naval base for warships.

Likud Knesset Member Michael Eytan called the House into session
Tuesday, July 5, to air the deal before it is finally signed. He acted
on receipt of legal opinions confirming that even the limited
Philadelphi route deal contravened the military clauses of the
Egyptian-Israeli treaty which mandate the demilitarization of all
parts of Sinai including the borders. If the deal goes through without
parliamentary approval, a group of lawmakers stands ready to file High
Court petitions to declare it invalid.

June 30, the day after Israeli and Egyptian officials agreed on the
protocol, Israeli infrastructure minister Binyamin Ben Eliezer and
Egyptian oil minister Sameh Fahmi added their signatures in Cairo to a
$2.5bn agreement for the annual sale of 1.1 bn cubic meters of
Egyptian natural gas to Israel in the next 15 years.

The gas will be pumped through a maritime pipeline to Israel’s
Mediterranean port of Ashkelon. The deal was concluded between the
Israel Electric Corp. and the Israeli-Egyptian consortium East
Mediterranean Gas (Egyptian General Petrol Corporation and Yossi
Meiman’s Merhav).

Sharon preferred the Egyptian gas offer to the bid made by the
Palestinian Authority-British Gas on the grounds that any cash flow to
the Palestinian would end up bankrolling terrorist operations against
Israel.

DEBKAfile’s Middle East sources reveal that, when Ben Eliezer
shook
the hand of Fahmi in Cairo, he had no notion that Egypt and Britain
had secretly struck a separate deal behind Israel’s back. It
provided
for British Gas and its Palestinian partners - through the
Athens-based Consolidated Contractors Company â€" CCC - to resume
drilling at the Gaza offshore field and sell the gas to Egypt over the
same 15-year period as the contract with Israel. This contract stands
to put $150-200m a year in Palestinian pockets.

Britain and Egypt will lay a marine pipeline from the gas fields to El
Arish outside which the British have begun constructing a gas refinery
at Sheik Al Zwayed. A small part of its output will be piped to the
Gaza power station to replace the energy supplied by Israel’s
electric
corporation.

The Israel-Egyptian military protocol if signed will turn El Arish
into a boom port, the harbor of the Egyptian fleet and site of a gas
terminal for European tankers to transfer liquid gas outside the
Middle East. Britain is sinking $150 m into its construction. The
refined Palestinian gas left over from its domestic use, about 60%,
will be siphoned into Egypt’s gas pipe system which is linked
to
Jordan and by the end of summer 2005 will reach Syria. Egyptian and
Palestinian gas will both flow through this system and it is entirely
possible that Israel will end up with Palestinian gas after all.

DEBKAfile’s Palestinian sources add: The head of the
Palestinian
Electricity Company Walid Sayel (son of the PLO military commander in
Lebanon General Saad Sayel who was murdered by the Syrians in 1993) is
handling the project for the Palestinians. He

Is also the go-between with the CCC, which runs the Palestinian
Investment Fund.

This turn of events is at complete odds with the Ariel
Sharon’s energy
strategy.

His decision to buy Egyptian rather than Palestinian gas was
influenced by the following security considerations:

1. If Israel rejected Palestinian gas, it would have no alternative
buyers given the world’s glut of gas.

2. The Palestinians would thus be denied revenues that would obviously
have been used to fuel armed action against Israel rather than
Gaza’s
reconstruction.

3. Egypt has a surfeit of gas. Sharon hoped the transaction with
Israel would have deterred Cairo from helping the Palestinians develop
their own field.

4. Israel feels betrayed by Britain and Egypt. Both had promised
helpful partnership roles in support of Israel’s evacuation of
the
Gaza Strip and undertook to create a new, effective Palestinian
security force to quell terrorist activity. (A British MI6 secret
service war room has been set up in the Gaza Strip). Now both are
instead acting in ways detrimental to Israel’s security
interests.

Five months ago, at the London conference on Palestinian reforms
organized by Tony Blair, US secretary of state Condoleezza Rice
informed the Palestinian leader Mahmoud Abbas of the whereabouts of
Yasser Arafat’ secret stash of money that had been donated for
Palestinian development in the CCC from 1994. He used its capital
profits to fund his terror war against Israel. Revealing this on March
20, DEBKAfile reported that she had obtained a promise from Abbas to
lay hands on the approximately $4 bn and spend the money on vital
reforms of the Palestinian administration.

(To read this article, click HERE)
http://www.debka.com/article.php?aid=1002

But Abbas did not kept his word to Rice to transfer Arafat’s
illicit
hoard to the Palestinian Authority, just as he reneged on his promise
to fight terror. Israel was taken aback to discover that Walid Sayel
is facilitating the Egyptian-British-Palestinian gas transaction under
orders from the late Arafat’s financial adviser Mohammed
Rashid, who
also set up his late boss’s corrupt monopolies which oiled the
Palestinian terror machine. Arafat’s death has changed little
in the
financial administration of the Palestinian Authority. And the back
door for financing terrorists from such transactions as Palestinian
gas exports to Egypt is wide open. 




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