US hopeful for rapid deal on Palestinian fund


AFP
Date: 05-31-06

BRUSSELS (AFP) - A senior US official said there was an "emerging consensus" on a special fund to channel money to Palestinians without passing through Hamas hands, forecasting an accord within a few weeks.

Scott Carpenter, Deputy Assistant Secretary for Near Eastern Affairs, admitted the complexity of the arrangements, and said that the money would not pay for any Palestinian civil servants' salary.

"There is an evolving emerging consensus on the need to get the temporary mechanism in place," he said, adding: "We want to see that the scope is fairly limited because it is a complicated thing to try to get the balance right."

"We are hopeful that something can emerge in the next 3-4 weeks or so," he told a small group of reporters in Brussels.

The United States and the European Union -- the biggest aid donor to the Palestinians -- both suspended funding after militant Islamic group Hamas won January elections, while Israel has also blocked the transfer of revenues.

To avoid financial meltdown in the Palestinian territories, the Mideast Quartet, which comprises the United States, United Nations, European Union and Russia, is working on setting up a World Bank fund to channel money to Palestinians without it passing through the Hamas-led government.

But the exact arrangements are difficult to work out, said the US official. "I don't think anyone at this stage in the Quartet is talking about wages, nobody is talking about providing direct wages," he said.

"The clear spirit of the international community is that we want to get something together quickly, but we also want to see it done right," added Carpenter.



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