US: There is still money in PA pipeline
In spite of senate, congress decision to halt aid to Palestinian Authority, US government still trying to convince lawmakers to proceed with funds transfer 'it is in US and Israeli interest'
"We still have some money in the pipeline," said State Department spokeswoman Victoria Nuland, adding: "but the concern is that if we don't get this going with the Congress in short order there could be an effect on the ground."
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Meanwhile, the US government is continuing in its efforts to convince congress to release funds currently "stuck" in various congress committees due to anger on the side of pro-Israeli legislators over the Fatah-Hamas unity deal and the Palestinian Authority persistence over the UN unilateral statehood bid in spite of US opposition.
US government officials tried to explain the dangers of withholding funds from the Palestinian Authority and the consequences expected in the West Bank if law enforcement officials do not receive their salaries, a move that could give Hamas the opening it needs to take over in the West Bank.
US Defense Secretary Leon Panetta clarified the US government stance in meetings he held on Monday in Jerusalem and Ramallah. The US government believes that while Palestinian Prime Minister Salam Fayyad is in charge of running the future Palestinian state, the US has a reliable caretaker for the funds.
Lawmakers in both the Senate and the House of Representatives have moved in recent weeks to freeze the flow of aid to the Palestinians that had been appropriated for fiscal year 2011.
Representative Kay Granger, the Republican chairwoman of the House subcommittee that oversees foreign aid, placed her hold in August "until the issue of statehood is resolved" at the United Nations, her spokesman, Matt Leffingwell, said.
US Representative Ileana Ros-Lehtinen, the chairwoman of the House Foreign Affairs Committee, is keeping her House of Representatives committee from considering approval of $192 million in humanitarian program assistance, JTA reported Monday.
No sense of urgency
US government officials are trying to convince congressmen that the "money is not only in the interest of the Palestinians, it is in US interest and it is also in Israeli interest and we would like to see it go forward".
They estimate that 150,000 Palestinians receive their salaries from the Palestinian Authority. Yet diplomatic sources stressed that at this stage, the funds are not lost and so there is no sense of urgency in the government.
US State Secretary Hillary Clinton recently urged congress to release a sum of $50 million which constitutes the balance of the US aid to the Palestinians for the current fiscal year. Israel has not interfered in the capitol's wrangling over aid to the Palestinians.
It is believed that if the unilateral process in the UN and the de-legitimization efforts against Israel continue, then Israel would take steps to intervene.
Reuters contributed to the report
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