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U.S. Congress withholds aid to Palestinian Authority over statehood bid

Oct 4, 2011 12:02 am By Marisol Seibold

Rewarding the PA through inaction would only encourage them to stick to their guns (pun intended) on the statehood bid. “Palestinians say freeze in US aid taking effect,” by Mohammad Daraghmeh for the Associated Press, October 3:

RAMALLAH, West Bank (AP) “” Palestinian officials said Monday that the U.S. has suspended West Bank development projects worth tens of millions of dollars after Congress froze funding to dissuade the Palestinians from seeking U.N. recognition of an independent state.

It’s the first concrete sign of repercussions for the Palestinians’ decision to defy Washington on the issue.

Hassan Abu Libdeh, the Palestinian economics minister, said he was informed Monday by officials of USAID, the U.S. government’s foreign aid agency, that two projects “” worth $55 million and $26 million “” were being put on hold for lack of funding. One supported the development of the Palestinian private sector and the other aimed to improve the investment environment, Abu Libdeh said, adding that 50 people involved were laid off last week and 200 others would follow by November. Other ministries also reported USAID projects were in jeopardy, including an $85 million five-year plan to improve Palestinian health services.

Where are the Saudis on this project?

USAID officials confirmed some programs were affected by the Congressional hold, but would not give details. “Ongoing programs will continue until funds are exhausted,” said one official, who spoke on condition of anonymity because he was not authorized to discuss the matter with the media.

Palestinian officials denounced the move as counterproductive to Mideast peace efforts and said this would not deter them from seeking full U.N. membership for a state of Palestine in the West Bank, Gaza and east Jerusalem “” lands Israel captured in 1967.

Two Republican-led committees in the House “” Foreign Affairs and the Appropriations subcommittee on the State Department and Foreign Operations “” put a hold on $200 million in economic assistance in late August, as the Palestinians were gearing up for their U.N. move.

Palestinian President Mahmoud Abbas last month proceeded anyway, presenting his case for recognition in a speech to the U.N. and formally submitting a request to the Security Council.

The Obama Administration finds itself caught in the middle “” opposing both the Palestinians’ U.N. gambit and the Republican moves to punish them for it.

Keeping the aid flowing “is not only in the interest of the Palestinians, it’s in the U.S. interest and it’s also in the Israeli interest, and we would like to see it go forward,” State Department Spokeswoman Victoria Nuland said Monday.

Visiting U.S. Defense Secretary Leon Panetta argued on Monday that “this is no time to withhold those funds, at a point in time where we are urging the Palestinians and the Israelis to sit down and negotiate a peace agreement.”…

So, bribe them?

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Filed Under: Palestinian Authority


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