Paris hosts donor conference for Palestinians

Officials from more than 60 countries are in Paris pledging a multi-billion dollar aid package for Palestinians. The BBC reports that the Palestinian Authority Chairman Mahmoud Abbas wants USD 5.6bn by 2010 to help set up a viable Palestinian state. Paris hosts donor conference for Palestinians He warned the one-day donors' summit that Palestinians were facing a "total catastrophe" and challenged Israel to freeze all settlement activity. The talks follow a U.S.-backed Middle East summit in Maryland last month. Abbas told the conference a "moment of truth" had arrived. "Without this support, without the payment of aid that will allow the Palestinian treasury to fulfill its role, we will be facing a total catastrophe in the West Bank and Gaza," he said. The moderate Palestinian leader added: "I expect [Israel] to stop all settlement activities, without exceptions." Under the U.S.-backed "road map" peace plan, Israel must freeze the building of Israeli settlements, while the Palestinians must disarm militants and restore order in the Palestinian territories. Abbas told the conference: "I'll be eager to implement all our commitments under the road map, and I expect the Israeli side to do the same, comprehensively, and without excuses, by us or by them." The biggest pledges came from the European Union and U.S., which promised USD 650mn and USD 555mn respectively. The new envoy of the Quartet of Middle East peace negotiators, former UK Prime Minister Tony Blair, told donors: "What we pledge today will be indispensable to the creation of that [Palestinian] state." U.S. Secretary of State Condoleezza Rice, UN Secretary General Ban Ki-moon and Russian Foreign Minister Sergei Lavrov are also attending the conference near the Arc de Triomphe. It is the biggest gathering of its kind since 1996. French President Nicolas Sarkozy opened Monday's talks by calling for an international force to be set up at a future date to help bolster the Palestinian security services. November's Annapolis talks saw Israel and the Palestinians relaunch negotiations that had been frozen for seven years and agree to seek a peace deal before the end of 2008. But the worsening economic crisis in the West Bank and Gaza Strip threatens to undermine the declared aim of creating a Palestinian state within the next 12 months. The World Bank and several aid organizations have said that until Israel lifts its system of restrictions on the movement of Palestinian people and goods, giving more money will not rebuild the Palestinians' economy. But many analysts fear that unless Washington is ready to take a much tougher line with the Israeli government, then even a limited economic upturn in the West Bank may prove impossible to achieve. As she made her way to Paris, the U.S. secretary of state told reporters: "There is an assumption here that there is not going to be turbulence in this process. There is." Palestinian Prime Minister Salam Fayyad has said he wants 70 percent of the aid to go directly to slashing his huge budget deficit. He is also presenting a three-year reform plan, with pledges to slash government spending by trimming the bloated public payroll. The Palestinian development plan formally also includes Gaza, but analysts say most of the aid is expected to go to the West Bank, which is controlled by the Palestinian president. Gaza has been virtually cut off from the world since Abbas's rivals in the Islamic militant group Hamas seized control of the territory by force in June. The gathering in Paris (Beta)

Paris hosts donor conference for Palestinians

He warned the one-day donors' summit that Palestinians were facing a "total catastrophe" and challenged Israel to freeze all settlement activity.

The talks follow a U.S.-backed Middle East summit in Maryland last month.

Abbas told the conference a "moment of truth" had arrived.

"Without this support, without the payment of aid that will allow the Palestinian treasury to fulfill its role, we will be facing a total catastrophe in the West Bank and Gaza," he said.

The moderate Palestinian leader added: "I expect [Israel] to stop all settlement activities, without exceptions."

Under the U.S.-backed "road map" peace plan, Israel must freeze the building of Israeli settlements, while the Palestinians must disarm militants and restore order in the Palestinian territories.

Abbas told the conference: "I'll be eager to implement all our commitments under the road map, and I expect the Israeli side to do the same, comprehensively, and without excuses, by us or by them."

The biggest pledges came from the European Union and U.S., which promised USD 650mn and USD 555mn respectively.

The new envoy of the Quartet of Middle East peace negotiators, former UK Prime Minister Tony Blair, told donors: "What we pledge today will be indispensable to the creation of that [Palestinian] state."

U.S. Secretary of State Condoleezza Rice, UN Secretary General Ban Ki-moon and Russian Foreign Minister Sergei Lavrov are also attending the conference near the Arc de Triomphe.

It is the biggest gathering of its kind since 1996.

French President Nicolas Sarkozy opened Monday's talks by calling for an international force to be set up at a future date to help bolster the Palestinian security services.

November's Annapolis talks saw Israel and the Palestinians relaunch negotiations that had been frozen for seven years and agree to seek a peace deal before the end of 2008.

But the worsening economic crisis in the West Bank and Gaza Strip threatens to undermine the declared aim of creating a Palestinian state within the next 12 months.

The World Bank and several aid organizations have said that until Israel lifts its system of restrictions on the movement of Palestinian people and goods, giving more money will not rebuild the Palestinians' economy.

But many analysts fear that unless Washington is ready to take a much tougher line with the Israeli government, then even a limited economic upturn in the West Bank may prove impossible to achieve.

As she made her way to Paris, the U.S. secretary of state told reporters: "There is an assumption here that there is not going to be turbulence in this process. There is."

Palestinian Prime Minister Salam Fayyad has said he wants 70 percent of the aid to go directly to slashing his huge budget deficit.

He is also presenting a three-year reform plan, with pledges to slash government spending by trimming the bloated public payroll.

The Palestinian development plan formally also includes Gaza, but analysts say most of the aid is expected to go to the West Bank, which is controlled by the Palestinian president.

Gaza has been virtually cut off from the world since Abbas's rivals in the Islamic militant group Hamas seized control of the territory by force in June.