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Saudis expected to bail out the Palestinian Authority

Special to World Tribune.com
MIDDLE EAST NEWSLINE
Thursday, February 2, 2006

Saudi Arabia, which predicted the Hamas legislative victory, was expected to increase funding to the Palestinian Authority.

Western diplomatic sources said the PA has appealed to Saudi Arabia to increase aid in an effort to cover any budget shortfall in wake of the Hamas victory in the Palestinian Legislative Council. The sources said the PA was expecting significant delays in aid pledged by the United States and the European Union.

"The Saudis are preparing to significantly increase its aid and this would be welcomed by the international community," a Western diplomat said. "I expect Riyad to announce new aid to the PA over the next few weeks."

On Wednesday, diplomatic sources said Saudi Arabia and Qatar pledged to provide a total of $30 million to the PA. The sources said the money would be allocated to pay salaries of 137,000 PA employees for January.

[On Thursday, the Reuters news agency quoted a senior Palestinian diplomat as saying that Saudi Arabia planned talks in February with the PA on aid. The diplomat said the Saudis could provide $1.2 billion to the Palestinians.]

Both the EU and the United States have raised the prospect of an aid cutoff to a Hamas-dominated PA. Brussels and Washington have demanded that Hamas recognize Israel and end attacks.

A Saudi government report drafted in December 2005 predicted that Hamas would win the PLC elections. The report, which was recently declassified, cited the drop in support for PA Chairman Mahmoud Abbas and his Fatah movement.

The report was drafted by the Saudi National Security Assessment Project, a consultant to the kingdom on issues of national and regional security. The study said the Saudi consultant conducted polls of Palestinians that told a "deep trust of senior PA officials, most of whom are Fatah members."

"The Palestinians face severe social welfare needs that have not been addressed by the current government," the study, first presented on Dec. 27, said. "This situation has created an opportunity that Hamas has been able to exploit."

The study cited the Hamas network of schools, mosques, orphanages and clinics. The PA has failed to provide such services, the report said.

"Hamas's efforts in this area, combined with its reputation for financial probity, are in contrast to perceived Fatah corruption and incompetence," the report said.

The study recommended that Saudi Arabia increase its participation in the PA. Riyad was deemed the largest donor to the PA and the study predicted that the kingdom would increase its aid amid the likelihood of a reduction in Western support.

Authored by Nawaf Obaid, the report advised Saudi leaders to raise their political profile in the Arab-Israeli conflict. One option was for King Abdullah to revive his peace plan that called for the establishment of a Palestinian state and return of Palestinian refugees to what is now Israel.

"American policies in the region, especially its unfettered support for Israel and its designation of Hamas as a terror organization complicate the situation, and demonstrate that the Bush administration is clearly out of touch," the report said. "Thus, they are unable to understand the situation from the Palestinian perspective."


Copyright © 2006 East West Services, Inc.

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