2. (S) Soliman led off the New Year's Eve meeting by telling the Codel that the region is at a special, critical juncture. Egypt is America's partner. Sometimes we have our differences. But Egypt will continue to provide the USG with its knowledge and expertise on the critical regional issues, such as Lebanon and Iraq. The Israeli-Palestinian conflict remains the core issue; Soliman contended a peaceful resolution would be a "big blow" to terrorist organizations that use the conflict as a pretext. For this reason, President Mubarak is committed to ending the Israeli-Arab "stalemate."

3. (S) Soliman applauded the Administration's efforts, commenting that Annapolis had given hope and begun a process. The timing is right for progress based on four factors. First, the PA leadership is moderate and willing to negotiate. Second, Hamas is isolated and politically cut off in Gaza. Third, the Israelis are ready for peace; Soliman assessed that the GOI coalition is broad and strong, and larger than Rabin's coalition of the mid-nineties. Fourth, Arab states are ready to see an end to "the struggle."

4. (S) Soliman stressed that Egypt stands ready to help the U.S. effort. The GOE knows both the Palestinians and the Israelis, and knows the obstacles to peace. Soliman recommended two steps be taken. First, both the Israelis and Palestinians must be pressed hard to sign an agreement, which the U.S. and international community could endorse, to be implemented at the proper time. Second, the U.S. should insist that "phase one" of the Roadmap should be completed before the end of 2008.

5. (S) Israeli-Palestinian Conflict: Soliman opined that the Palestinian Authority was ready to sign an agreement, but that establishment of a state may take between 1-3 years. While Hamas is isolated politically and unable to stop an Israeli-PA agreement, it remains entrenched in Gaza, and it was unclear to Soliman how long that would last. At one point in the discussion, Soliman seemed to imply Hamas may remain in control of Gaza for more than a year; at another juncture, he told Senator Voinovich that if negotiations proceeded briskly, Hamas may be forced to cede power in Gaza in 3-4 months. The bottom line for Hamas, according to Soliman, is that they must be forced to choose between remaining a resistance movement or joining the political process. They cannot have it both ways, he said.

http://www.guardian.co.uk/world/interactive/2010/nov/28/us-embassy-cables-wikileaks