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Billions Are Sought To Aid Palestinians

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By KARIN LAUB, The Associated Press

Published: December 17, 2007

RAMALLAH, West Bank - The international community is being asked today to take a very expensive leap of faith in approving a huge new injection of aid to the Palestinians.

Even if donor countries at a conference in Paris meet the request for an unprecedented $5.6 billion over three years, it may not be enough to stem the economic decline in the West Bank and Gaza.

The Palestinian economy can only recover if Israel eases restrictions on Palestinian movement, the World Bank said. But a reluctant Israel, putting its security first, has given no guarantees.

It's simple math for clothing wholesaler Samer Zawiyani of Nablus in the West Bank. Shipping eats most of his profits because trucks wait for hours at checkpoints as soldiers look for bombs. "We don't need the billions of the world. We need Israel to remove the checkpoints," he said.

Aid and freer movement are seen as essential if a new U.S.-led push for an Israeli-Palestinian peace deal by the end of 2008 is to be spared a serious psychological blow. Negotiations resumed last week, after seven years of diplomatic deadlock and bloodshed.

Given that choice, the representatives of 90 countries and international organizations invited to today's gathering are expected to come up with the money requested by the Palestinians. Among those making a pitch will be U.S. Secretary of State Condoleezza Rice and international Mideast envoy Tony Blair, former British prime minister.

Donors say they are aware of the stakes and are urging Israel to be more flexible. "The political pressure exists, it is being exerted by the Europeans and the Americans," said Christiane Hohmann, spokeswoman for EU External Relations Commissioner Benita Ferrero-Waldner.

So far, only Britain has said it will link disbursement to improved conditions on the ground, including an easing of Israeli restrictions and Palestinian government reform.

"The plan being presented aims to assure donors they are not expected to prop up the Palestinian Authority indefinitely, even though the bulk of the aid, $3.9 billion, would go toward the government's budget deficit. The balance is to shift gradually to development projects, under a scenario that has Israel easing restrictions and enabling the Palestinian private sector to recover.

The Palestinian plan formally covers the West Bank and Gaza, territories on either side of Israel, but the focus is on the West Bank, run by moderate Palestinian President Mahmoud Abbas.

Abbas has no control over Gaza, which was seized by the Islamic militant group Hamas in June and has since been cut off from the world by Israeli and Egyptian border closures.

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