U.S. aid to Palestinian Authority

For the first time in the history of U.S.-Palestinian relationship, the U.S. has directly given the Palestinian Authority chaired by Yassar Arafat, over $20 million on July 16, 2004. This is part of multi-million dollar package of aid to Palestinian communities to be used for repairing and maintaining roads, public buildings, and power, water and sewage lines damaged in years of fighting with Israel.

The U.S. National Security Adviser Condaleeza Rice during her visit to the region had promised this payment to the Palestinian Authority. This amount will go into a special account administered by the Palestinian Finance Minister Saleem Fayad. Saleem is a former World Bank official entrusted with the task of introducing proper financial controls in the affairs of the Palestinian Authority.

A U.S. official commented "we are happy with Fayad. We think he has done a good job and he has our full support".

The Asian Deputy Minister of Planning Jihad ul Wazil also confirmed that this was the first instance of direct transfer of funds of U.S. aid money to the Palestinian Authority.

Another $30 million aid is being channeled through local and international non-governmental organizations. Until now, U.S. has by passed Mr. Arafat and the Palestinian Authority while proving financial aid to Palestinians. The funds were always diverted through U.N. or other organizations.

Mr. Rice was in the region to push for implementation of U.S. sponsored "road map" plan for West Asian peace. The "road map" drafted by the U.S., U.N., E.U. and Russia in December 2002 calls for simultaneous concessions from both sides leading to resolution of all disputes and the eventual creation of an independent state of Palestine in three years.

Israel is opposed to the creation of an independent Palestine and to any concessions on the question of Jawish settlements in occupied areas. The Bush administration considers Yasser’s leadership of Palestine as an impediment to peaceful settlement and has supported Mahmood Abbas who was made Prime Minister of Palestine in March 2003. He called for the abandonment of the Intifada (armed rebellion) in favor of diplomacy and reforms.

At the same time, he has reiterated that the Palestinian people will not accept anything less than Palestine state with Jerusalem as its capital and the removal and the removal of Jewish settlements in the West Bank and Gaza.

In the first stage of the peace plan, violence is to cease and Israel is to withdraw its troops from Palestinian areas occupied during the current conflict. Also, Israel has to stop further construction of settlements in the West Bank.

The Palestinians on their part must dismantle organizations and groups believing in violence.

Radical Palestinian groups have however repeated the "road map of peace" and asserted that their struggle will continue as long as the occupation continues.
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