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| Call to Arabs on Palestinian aid | |
| (30 minutes later) | |
| The Quartet of major powers mediating in the Middle East peace process has called on Arab states to honour aid pledges to the Palestinians. | |
| The call was made after talks in London between the UN, US, UN, EU and Russia. | |
| US officials say only about a fifth of money promised by Arab nations in December has been paid. | |
| The Gaza Strip faces a strict Israeli blockade, imposed against Hamas militants, as well as in response to rocket attacks fired into Israel. | |
| US officials say that of $717m promised by Arab League members, only $153m of Arab pledges have been delivered, all from three countries: Saudi Arabia, the UAE and Algeria. | |
| I do believe that the window for the two-state solution will not be forever open... you could argue that it has gotten narrower and narrower over time Condoleezza RiceUS Secretary of State Israel's dilemma over sick GazansTalks fail to hearten Gazans | I do believe that the window for the two-state solution will not be forever open... you could argue that it has gotten narrower and narrower over time Condoleezza RiceUS Secretary of State Israel's dilemma over sick GazansTalks fail to hearten Gazans |
| US Secretary of State Condoleezza Rice is going to have a three-way session with Palestinian Prime Minister Salam Fayyad and Israeli Foreign Minister Tzipi Livni. | |
| BBC diplomatic correspondent Bridget Kendall says there is a sense of urgency, with one official warning that the Palestinian Authority is in danger of financial collapse. | |
| Shortages of fuel and basic goods have created a stranglehold on the Gaza Strip's fragile economy since Israeli restrictions were imposed after Hamas seized control of the Strip last June. | Shortages of fuel and basic goods have created a stranglehold on the Gaza Strip's fragile economy since Israeli restrictions were imposed after Hamas seized control of the Strip last June. |
| US sponsored peace talks launched between Israel and the Palestinian Authority - controlled by Hamas's rival Fatah - last year, aiming for a two-state solution by the end of 2008, have produced little tangible progress. | US sponsored peace talks launched between Israel and the Palestinian Authority - controlled by Hamas's rival Fatah - last year, aiming for a two-state solution by the end of 2008, have produced little tangible progress. |
| Grievances | Grievances |
| En-route to London, Ms Rice warned that the "window for the two-state solution" would not be "forever open" and had become "narrower and narrower over time". | En-route to London, Ms Rice warned that the "window for the two-state solution" would not be "forever open" and had become "narrower and narrower over time". |
| Ms Rice was careful not to pinpoint individual Arab states for criticism | Ms Rice was careful not to pinpoint individual Arab states for criticism |
| But she added: "I think it is far too early to start [having] any sense of despair about the end of the year." | But she added: "I think it is far too early to start [having] any sense of despair about the end of the year." |
| Ahead of the talks, Palestinian Prime Minister Salam Fayad said the process was "stumbling and stumbling badly". | Ahead of the talks, Palestinian Prime Minister Salam Fayad said the process was "stumbling and stumbling badly". |
| He stressed that he was hoping the meeting would address Palestinian grievances: | He stressed that he was hoping the meeting would address Palestinian grievances: |
| "For us Palestinians, we're supposed to build institutions and strengthen institutions, and enhance our capacity in all fields of governance - including security. So far as the international donor community is concerned, it was supposed to provide us with the funding necessary to do all of these things," he said. | "For us Palestinians, we're supposed to build institutions and strengthen institutions, and enhance our capacity in all fields of governance - including security. So far as the international donor community is concerned, it was supposed to provide us with the funding necessary to do all of these things," he said. |
| "And so far as the government of Israel is concerned, it was supposed to ease mobility restrictions," he added. | "And so far as the government of Israel is concerned, it was supposed to ease mobility restrictions," he added. |
| Our correspondent says the modest ambition voiced by some for of Friday's talks is to get Arab nations to produce more cash to keep the Palestinian Authority afloat. | Our correspondent says the modest ambition voiced by some for of Friday's talks is to get Arab nations to produce more cash to keep the Palestinian Authority afloat. |
| And, she adds, overall the point of this high level gathering it seems is not to force any breakthrough, but simply to keep all sides engaged and make sure that the faltering peace process stays alive. | And, she adds, overall the point of this high level gathering it seems is not to force any breakthrough, but simply to keep all sides engaged and make sure that the faltering peace process stays alive. |
| 'Near to collapse' | 'Near to collapse' |
| Ahead of the talks, British aid agencies warned that ordinary life in Gaza was becoming "intolerable". | Ahead of the talks, British aid agencies warned that ordinary life in Gaza was becoming "intolerable". |
| "Only a trickle of medicine, food, fuel and other goods is being allowed in," warned a statement from agencies including Oxfam and Christian Aid. | "Only a trickle of medicine, food, fuel and other goods is being allowed in," warned a statement from agencies including Oxfam and Christian Aid. |
| "It has made people highly dependent on food aid, and brought the health system and basic services such as water and sanitation near to collapse." | "It has made people highly dependent on food aid, and brought the health system and basic services such as water and sanitation near to collapse." |
| Speaking before a weekend of shuttle talks with negotiators in Jerusalem and the West Bank, Ms Rice warned that the expansion of Israeli settlements in the occupied West Bank did not mean the houses would remain under Israeli control in a final-settlement deal. | Speaking before a weekend of shuttle talks with negotiators in Jerusalem and the West Bank, Ms Rice warned that the expansion of Israeli settlements in the occupied West Bank did not mean the houses would remain under Israeli control in a final-settlement deal. |
| "I do not, and the US government does not, accept that anything done prior to agreement can ... present a fait accompli or determine the final outcome of this," she said. | "I do not, and the US government does not, accept that anything done prior to agreement can ... present a fait accompli or determine the final outcome of this," she said. |
| Before she left Washington, the most senior US diplomat said young Palestinians were losing hope of an agreement with Israel. | Before she left Washington, the most senior US diplomat said young Palestinians were losing hope of an agreement with Israel. |
| She told an American Jewish audience Israel needed to make "difficult decisions" to provide the Palestinians with the dignity of statehood. | She told an American Jewish audience Israel needed to make "difficult decisions" to provide the Palestinians with the dignity of statehood. |