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### Viewing cable 10CAIRO177, Sinai Update: Counter Smuggling and Floods

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10CAIRO177 | 2010-02-09 13:01 | 2011-01-28 00:12 | SECRET//NOFORN | Embassy Cairo

`

    VZCZCXYZ0001
    OO RUEHWEB

    DE RUEHEG #0177/01 0401346
    ZNY SSSSS ZZH
    O R 091346Z FEB 10
    FM AMEMBASSY CAIRO
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 0195
    INFO RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
    RHMFISS/HQ USCENTCOM MACDILL AFB FL
    RHMFISS/JOINT STAFF WASHINGTON DC
    RUEHEG/AMEMBASSY CAIRO
    RUEKJCS/SECDEF WASHINGTON DC

` `

    S E C R E T CAIRO 000177

    SIPDIS
    NOFORN

    E.O. 12958: DECL: 2020/02/09
    TAGS: PREL PARM MASS IS KPAL EG
    SUBJECT: Sinai Update: Counter Smuggling and Floods

    REF: SECDEF 122723; CAIRO IIR 6 899 0149 10; 2009 CAIRO 2394
    2009 CAIRO 491

    CLASSIFIED BY: Margaret Scobey, Ambassador, DOS, EXO; REASON: 1.4(B),
    (D)

    ¶1.  Key Points:

    -- (S/NF) The GOE claims to have increased its efforts against
    HAMAS-related smuggling activity, and reports recent success in
    interdicting and dismantling goods and financial smuggling
    networks.

    -- (C) Recent heavy rains in northern Sinai caused an estimated $11
    million worth of damage.  Local residents have complained about the
    GOE's slow response and say the Muslim Brotherhood and other
    Islamic organizations have provided the most effective relief
    services.  Rains also temporarily halted construction of a
    subterranean steel wall and reportedly caused damage to the vast
    network of smuggling tunnels under the Egypt-Gaza border.

    -- (S/NF) Security concerns have temporarily suspended installation
    of the FMF-funded border tunnel activity detection system (BTADS),
    which will delay the scheduled April 2010 completion date.  MOD has
    agreed in principle to accept follow-on support for the BTADS
    project.

    -- (SBU) USAID is still awaiting approval from the Ministry of
    International Cooperation (MIC) to begin implementing $50 million
    in FY2009 Supplemental funding aimed at creating economic
    alternatives to smuggling in the Sinai peninsula.

    -----------------

    Focusing on HAMAS

    -----------------

    ¶2.  (S/NF) During a recent meeting with Secretary of Defense Gates,
    the Director of the Egyptian General Intelligence Service (EGIS)
    Omar Soliman said that Egypt was increasing efforts to combat
    HAMAS-related smuggling activity, including bolstering security
    along the Sudanese border (ref A). He also reported increased
    effectiveness in tackling smuggling networks in Sudan, Somalia, and
    Yemen.  Egyptian officials have separately reported recent success
    at interdicting and dismantling HAMAS-related goods and money
    smuggling networks along the Egypt-Gaza border.

    ---------------------------------

    Sinai Flood Damage Localized.....

    ---------------------------------

    ¶3.  (C) Multiple contacts in northern Sinai told us that damage
    from the floods is severe, but localized along and in the Wadi El
    Arish riverbed.  Osama Kassas, Head of the North Sinai
    Businessmen's Association, which is helping with the rebuilding
    process, stated that seven people died as a result of the floods
    and damages are estimated to be around 60 million Egyptian pounds
    (USD 11 million).  He said the flood destroyed the open market, a
    bus station and the Olympic village, which housed a branch of the
    Ministry of Youth, because the GOE built them in the riverbed.  In
    addition, villages in central Sinai and residential areas of El
    Arish city along the riverbed were severely damaged including the
    two roads that crossed the riverbed connecting western and eastern
    El Arish city. Our contacts in Sinai said 27 houses and 60
    businesses were completely destroyed, and 90 houses were severely
    damaged by water and mud.  Kassas said approximately 1,200 people

    were directly affected by the flood.

    --------------------------------------------- ---

    But Residents Frustrated with Assistance Efforts

    --------------------------------------------- ---

    ¶4.  (C) Kassas told us that Sinai residents were frustrated that
    the Egyptian Government had taken two days to respond to the
    flooding and were hostile toward PM Nazif during his visit to
    inspect the damage.  Kassas said the GoE repaired the two roads and
    is beginning to provide assistance such as blankets, tents and
    food.  However, its efforts are "random and disorganized" with
    assistance going to those with connections and not those who most
    need it.  He stated that most NGOs and private businesses in Sinai
    either do not have the capacity to provide assistance or are
    focused only on publicity.  Kassas said the most effective relief
    efforts are those connected with the Muslim Brotherhood and other
    Islamic organizations. (Comment: The Muslim Brotherhood does not
    have a strong organizational presence in northern Sinai. If they
    are providing relief services, they would have likely deployed
    people from outside the Sinai peninsula.  End Comment).

    ¶5.  (SBU) On January 31, First Lady Suzanne Mubarak traveled to
    North Sinai to see the damage caused by the floods.  She met with
    the North Sinai Governor Mowafi, various ministers and local
    leaders.  She said that the GoE is working to resolve the crisis
    caused by the floods and begin a "new phase for development" for
    the region. Security forces required those people living in tents
    due to flood damage to remove the tents and evacuate the area
    during the visit.   An 11-truck aid convoy from the Ministry of
    Military Production arrived in El Arish with refrigerators, water
    heaters, gas cylinders, televisions and domestic electric
    appliances for flood victims.

    ----------------------

    Flooding and Smuggling

    ----------------------

    ¶6.  (S/NF) The January 14 - 19 flooding also temporarily halted
    construction of a subterranean steel wall along the Egypt-Gaza
    border.  Construction re-started on January 29.  The Egyptian
    military also reported finding fewer tunnel openings since the
    rains (ref B), but noted increased activity along the Palestinian
    side of the border, which they attributed to repair work on
    rain-damaged tunnels (Comment: Even small amounts of rain can cause
    tunnels to collapse, so a significant amount of flooding would
    likely cause serious damage.  End Comment).

    -------------------

    USG-Funded Programs

    -------------------

    ¶7.  (S/NF) The FMF-funded BTADS project has been on-hold since
    January 2 due to security concerns (ref C).  We are currently
    awaiting MOD-approval to conduct a security assessment of the Rafah
    area before redeploying the Army Corps of Engineers (ACE).  On
    January 31, MOD denied OMC's most recent request citing undisclosed
    "security concerns."  During a January 11 meeting with Field
    Marshal Tantawi, Ambassador and OMC Chief stressed the importance
    of working together to ensure security concerns are quickly and
    effectively addressed so installation can resume.  During the same
    meeting, Assistant Minister of Defense Major General Mohammed
    al-Assar claimed that the project was still on track for a February
    2010 completion.  (Comment:  Al-Assar is fully aware that delays

    will extend completion well beyond April 2010.  It is likely that
    he has not informed Tantawi of the delay originally caused by the
    Minister's own insistence on technical modifications for the
    original BTADS equipment.  End Comment).  On January 21, MOD did
    agree in principle to submit a request for follow-on support for
    the BTADS project, which will be critical once the ACE completes
    the installation and turns the system over entirely to the Egyptian
    military.

    ¶8.  (S/NF) EGIS is moving forward, albeit slower than originally
    anticipated, on a Nonproliferation and Disarmament Fund (NDF)
    financed project to deploy 15 x-ray scanners to inspect vehicular
    traffic entering the Sinai for explosives and arms (ref D).
    Representatives from EGIS and the Ministry of Interior are
    currently in the United States for operator training.  EGIS
    anticipates that the necessary infrastructure preparations for the
    first site, the Ahmed Hamdi tunnel, will be completed by late
    March/early April.

    -----------------

    Sinai Development

    -----------------

    ¶9.  (SBU)  Ambassador and AID Director met with Minister of
    International Cooperation (MIC) Fayza Aboulnaga on February 3 to
    discuss the $50 million in FY2009 ESF Supplemental funding aimed at
    improving economic opportunities and employment in the North Sinai
    governorate.  Minister Aboulnaga continued to object to provisions
    related to project monitoring and audit plans, even though AID has
    repeatedly modified the draft assistance agreement in consideration
    of the special security circumstances in North Sinai and the GOE's
    desire to minimize the USG's profile in the governorate.  AID is
    making one last effort to meet MIC concerns, but will not
    compromise on basic, legal requirements to conduct audits and
    monitor USG-financed work. AID Director is also scheduled to meet
    with the new North Sinai governor to solicit his support for the
    program.
    SCOBEY

`