The economic reasons behind the siege on Gaza

‘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 Shin Bet informed the US embassy that banks in Gaza know that they must neither allow Hamas members to open bank accounts nor have salaries deposited into existing accounts. If the banks disobey, they will lose their stamp of approval from the Palestinian Monetary Authority (PMA), a branch of the PA that is under constant pressure by Israel and the US to prevent any dealings with Hamas members. The Shin Bet expressed satisfaction that the Gaza banking system has indeed been cowed into submission.’

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