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| Joined: | Mon Nov 21st, 2005 |
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The cable, titled "Shin Bet Talks Gaza Economics," was written by David R. Burnett, Economic Counselor in the US embassy in Tel Aviv. It describes a briefing given to Embassy officials by senior members of the Israeli Shin Bet*, on how Israel uses the banking system in Gaza to increase the political influence of the Palestinian Authority (PA) in Gaza, by attempting to starve the Hamas government of cash.
The report further elaborates that the circulation of Israeli Shekels (NIS) in Gaza is increasing, while foreign currency supplies are dwindling. This is clearly a direct result of the almost total ban on exports from Gaza (although Gazan merchants may still import certain products) - yet the Shin Bet kept silent regarding the reason for the shortage in foreign currency.
This document demonstrates that the Israeli government is in fact strangling the Gazan economy in order to turn Gaza into a captive market for Israeli products and maintain demand for the Israeli shekel - all in the name of "fighting terrorism." It also demonstrates that the international community - and especially the US - have allowed this policy to continue.
War 101