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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (212950)	12/8/2004 3:29:25 PM
From: Road Walker	Read Replies (2) \| Respond to of 1573249

Bush Gives $20 Mln to Palestinians for Israeli Bills 24 minutes ago Politics - Reuters By Adam Entous WASHINGTON (Reuters) - President Bush (news - web sites) on Wednesday approved $20 million in direct aid to the Palestinian Authority (news - web sites) to help pay its Israeli utility bills after key lawmakers objected to plans to use the money for presidential elections in January and to pay Palestinian salaries. Bush's decision to provide the money breaks with long-standing restrictions on direct U.S. aid to the Palestinian Authority and is part of what the White House called a renewed push for peace following the death of long-time Palestinian leader Yasser Arafat (news - web sites). "We're sending a message with this financial assistance that we want to help as they move forward on elections and as they move forward on putting institutions in place for a viable state to emerge," White House spokesman Scott McClellan said. The State Department had initially wanted to give the money to the Palestinian Authority to directly support the Jan. 9 presidential election to replace Arafat, and to help pay Palestinian salaries. But pro-Israel lawmakers with close ties to the White House raised objections, arguing that adequate safeguards had yet to be put in place to ensure the Palestinian Authority would spend the money properly. By providing the money for utilities, the Bush administration is freeing up resources within the cash-strapped authority to help cover the cost of the election, albeit indirectly, officials said. "You can't organize an election if you can't pay your employees and you can't keep your power on," an administration official said. Palestinian officials in Washington were not immediately available for comment. McClellan said the U.S. aid should encourage additional donations from other countries to "help the Palestinian people as they move forward on conducting these elections." The United States hopes the Palestinians will elect a leader that is ready to jump-start peace talks with Israel. Bush has long shunned Arafat as an obstacle to peace. FINANCIAL CRISIS The Palestinian Authority is facing a severe financial crisis due to falling tax revenues during four years of violence which has paralyzed the Palestinian economy. Administration officials said the crisis was diverting attention away from needed reforms. "The upcoming Palestinian elections have made a functioning Palestinian Authority more important than ever," the senior Bush administration official said. "The United States has a national security interest in helping to end the ongoing violence and terror in the Middle East and to make progress toward the president's June 24, 2002, vision of peace." The $20 million will be overseen by Palestinian Finance Minister Salam Fayyad, a former International Monetary Fund (news - web sites) official with strong U.S. backing. "We have great confidence in the ability of those funds being directed toward the purpose for which they are designated," McClellan said. They have been designated to pay utility services, including the payment of arrears to Israeli utility companies, officials said. Because of congressional restrictions on direct aid to the Palestinian Authority, Bush used his waiver authority to provide the money, officials said. American aid typically goes through international groups that bypass the Palestinian Authority, although Washington contributed directly to a fund used by the authority in the first year after the Oslo peace accord was launched in 1993. Israel gets about $3 billion a year from Washington. The $20 million for the Palestinian Authority will come from a $75 million package of indirect support approved by Congress. (Additional reporting by Steve Holland)