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Palestinian Authority seeks cash from Europe to pay salaries

Special to World Tribune.com
MIDDLE EAST NEWSLINE
Friday, November 10, 2000

RAMALLAH — The Palestinian Authority is appealing to donor nations for an immediate infusion of cash to pay for government salaries.

PA International Cooperation Minister Nabil Shaath has been touring Europe in an effort to obtain the money. Shaath has told European Union leaders that the PA is undergoing a severe financial crisis amid its mini-war with Israel in the West Bank and Gaza Strip.

On Wednesday the European Commission authorized payment of 27 million euros [$22.6 million] to the PA. The commission said the money was meant to meet "urgent current expenses such as salaries for public sector employees."

PA officials said the money was meant to compensate for the delay in Israeli payments to the Palestinians of tax proceeds during the five weeks of violence. Israel has pledged to resume these payments, but did not transfer the funding during October.

The EU aid is regarded as a special allocation and will be deducted once Israel is up to date in payments to the Palestinians. On Sunday, Israel authorized a partial payment.

PA Finance Minister Mohammad Zohdi Nashashibi said the Palestinians have lost more than $1 billion during the fighting with Israel. Nashashibi said that Israel has delayed payment to the PA of 265 million shekels [$62 million].

PA Chairman Yasser Arafat is expected to ask for increased U.S. aid when he meets President Bill Clinton at the White House on Thursday. Congress has passed a resolution that blocks aid to the PA if it unilaterally declares a Palestinian state.

Israel has also sustained losses from the fighting with Palestinians. Tourism has taken a dive over the last month as the U.S. State Department has warned Americans from traveling to Israel and the Palestinian areas.

Still, Israeli tourism during the first three quarters of 2000 has increased by 50 percent from the same period last year and officials said this year will be a record year in tourism -- with 2.25 million visitors. Officials said the majority of trips to Israel have been postponed rather than cancelled.

Friday, November 10, 2000



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