Dan provided the following insights into the Israeli political situation:

1. Bibi wants badly to broaden his coalition by including Boogie Herzog and hsi Labor seats (Dennis Ross, my JPPI co-chair, also told me this week the government would not last beyond the end of the year and that Bibi wants to include Herzog and his Labor Party). Herzog will not come in without clear commitments on the peace process.

2. There is a "Plan B" if the peace process continues to flounder. It consists of the following:

(1) A long-term ceasefire in Gaza. Though denied by both sides, Dan believes the secret negotiations are far advanced, with proposals being exchanged. If successful, this would have several advantages.
(a) It would allow Gaza reconstruction, which Abbas has done nothing to assist, to gain momentum.
(b) Israel is concerned pressures are building because of lack of economic opportunity.

(2) An economic plan (Jake, at Davos in January I proposed to the PA's prime minister, who was positive, what I suggested to State--QIZs for the West Bank, as existed in Gaza; there are a dozen in Jordan)

(3) Transfer of more territory from Zone C (about 55 percent of the West Bank) under Israel's sole control to Zone A, controlled by the Palestinians, creating more space for development.

(4) More freedom of movement and fewer checkpoints.

(5) Build new homes only in tightly defined current settlement blocs.

Best wishes, and I look forward to talking to you tomorrow.

Stu Eizenstat

https://wikileaks.org/podesta-emails/emailid/59117

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