Erekat: US warns of aid cut for statehood bid

The United States has warned it will cut aid to the Palestinians if they proceed with a unilateral bid for statehood at the UN in September, chief Palestinian negotiator Saeb Erekat said Friday.

Erekat said the US Consul-General in Jerusalem, Daniel Rubinstein, told him Friday that the US will take "punitive measures" if the Palestinians proceed with seeking UN recognition of statehood. Erekat said Rubinstein warned the US will stop granting the Palestinians an annual aid package of $470 million. (AP)