U.S. Near Proposing New Aid for Gaza Water
AP
Date: 07-27-05
By ANNE GEARAN, AP Diplomatic Writer
WASHINGTON - Secretary of State Condoleezza Rice is expected to propose additional U.S. money for the Palestinians this summer unless the new government fails to deliver on promises of security and fiscal responsibility, a State Department official said Wednesday.
The new money, perhaps as much as $37 million, would go toward a water project in the Gaza Strip. The United States would offer the money sometime after Israeli troops and settlers begin withdrawing from Gaza in mid-August, the senior official said.
The official discussed the proposed donation on condition of anonymity because the decision is not final.
If the Palestinian component of the Gaza pullout goes badly, the United States could hold off on new donations to the Palestinians.
Israel is to hand over Gaza to Palestinian political and military control after 38 years of occupation.
In addition to international doubts about the training and readiness of Palestinian security forces, it is not clear that Palestinian leader Mahmoud Abbas can put down violence from militant groups outside his direct control.
Palestinian negotiator Saeb Erekat has said Palestinians could be short of drinking water by next summer without immediate international investment into a north-south water carrier in Gaza.
James Wolfensohn, a special envoy on the Gaza withdrawal, told Congress on Tuesday that international investment in infrastructure in Gaza is a good way to create jobs for the approximately 50 percent of Gaza's 1.2 million Palestinians who are unemployed.
The United States is the largest single donor to the Palestinians, with $275 million to be spent this year.
The overwhelming majority of U.S. aid to the Palestinians has been funneled through third parties because of concern that the money would be used to fund terrorism or would be lost to corruption. President Bush announced a direct payment of $50 million as a show of support for the Abbas government in May, although Congress insisted on close oversight of how the money is spent.
The State Department has discussed similar oversight for the water project money, the State Department source and congressional aides said.
The additional money would come from a pot of about $37 million in unused funds intended to promote Mideast peace.
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