Bush with Abbas (archive)
Photo: AFP
Bush administration to pledge $500 million in aid for Palestinians
Congress to vote on new proposal offering record sum in financial aid to Palestinian Authority in West Bank, though legislators say they was assurances that millions won't end up in Hamas' hands

The United States will pledge about $500 million for the moderate-led Palestinian government in the West Bank when Arab, European and other nations meet next week, US officials said Friday.


The money would go toward a goal of $5.6 billion that former British Prime Minister Tony Blair hopes to raise to rescue the Palestinian economy and reinforce institutions that would become the backbone of any eventual independent Palestinian state.


Secretary of State Condoleezza Rice will deliver the pledge at a conference Blair has called Monday in Paris, the officials said.


The money is part of world efforts to improve the Palestinians' financial position as new US-sponsored peace talks begin.


Rice cannot promise that she can deliver on the pledge, which must be approved by the US Congress. The money includes about $400 million that the White House has already announced, but that has not been approved by Congress.


Some members of Congress are worried that money spent to strengthen the West Bank eventually could benefit a rival radical-led government in the other, separate, Palestinian territory of the Gaza Strip. Other legislators want greater assurance that the West Bank government has shed its long reputation for corruption and cronyism.


World Bank: Israel must ease restrictions

Rice will meet Sunday with Palestinian Prime Minister Salam Fayyad to discuss the pledge. Fayyad is a banker whose clean reputation and efforts to reform the government are often praised by the Bush administration.


Fayyad is expected to raise Palestinian frustration that he has been unable to win assurances from Israel that it will ease stifling restrictions on Palestinian movement.


The World Bank has warned that unless Israel removes some of the physical and administrative obstacles to Palestinian travel and trade, donor countries may be wasting their money.


Even if the donors pay the full amount, the Palestinian economy would keep shrinking by about 2 percent a year as long as the Israeli restrictions remain in place, the World Bank wrote in a report issued Thursday.


Israel's military has been reluctant to remove some of the hundreds of roadblocks and barriers in the West Bank, saying they're an effective tool against Palestinian militants, and the Palestinian government does not have sufficient control over the territory to prevent attacks on Israelis.


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