Peres to ask for U.S. aid for pullout

Deputy Prime Minister Shimon Peres said Tuesday he is going to Washington to seek U.S. financial aid for the Gaza Strip pullout plan.

Peres told Army Radio he is set to meet with Vice President Dick Cheney and other administration officials, to ask them to assist with the withdrawal from the Gaza Strip and four West Bank settlements.

Peres refused to say how much money Israel is seeking, but said the money would also be used to develop the Galilee and Negev.

"Essentially, the issue is to coordinate

the financial aspect of the Gaza withdrawal," Peres said, adding he would discuss "distribution of resources ... and to see what can be done to get U.S. assistance for the development of the Negev and the Galilee."

USD 500 million

"It is all one budget," a government official said on condition of anonymity, pointing out that if the U.S gives money to develop the Galilee and the Negev it would free up other Israeli resources to offer more compensation to the evacuated settlers, who say they are not being given enough money.

One official close to the Bush administration said officials in Washington estimated Israel would request about USD 500 million in aid.

The official said it was expected that Prime Minister Ariel Sharon would raise the issue during an upcoming meeting with President

George Bush.

However, an Israeli government official, speaking on condition of anonymity, denied Sharon would request aid for the withdrawal.

While Israel has budgeted about USD 1 billion for the pullout, the official said the withdrawal could cost much more after Israel compensates the 9,000 settlers slated for evacuation, moves its military installations and completes construction of the new fences and surveillance equipment along the Gaza border.