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Paris hosts Mid-East donor talks Paris hosts Mid-East donor talks
(about 2 hours later)
Officials from more than 60 countries are meeting in Paris to discuss an aid package for the Palestinians, in the biggest meeting of its kind since 1996. Officials from more than 60 countries are meeting in Paris to discuss an aid package for the Palestinians, in the biggest such meeting for over a decade.
Palestinian Prime Minister Salam Fayyad is seeking $5.6bn (£2.8bn) over three years to help lay the foundations for a viable Palestinian state. Moderate Palestinian President Mahmoud Abbas is seeking $5.6bn (£2.8bn) by 2010 at the one-day donors' summit to help set up a viable Palestinian state.
The European Union pledged $650m (450m euros; £320m) of aid in 2008. He also took the opportunity to demand Israel freeze all settlement activity.
The one-day donors' summit follows last month's US-sponsored Middle East talks in Annapolis, Maryland. Aid pledges are pouring in at the talks, which follow a US-backed Middle East summit in Maryland last month.
The new envoy of the Quartet of Middle East peace negotiators, former UK Prime Minister Tony Blair, and US Secretary of State Condoleezza Rice are among those attending the conference. Mr Abbas told the conference a "moment of truth" had arrived.
Humanitarian crisis He said: "I expect [Israel] to stop all settlement activities, without exceptions."
French President Nicolas Sarkozy opened Monday's talks near the Arc de Triomphe, at which UN Secretary General Ban Ki-moon and Russian Foreign Minister Sergei Lavrov are also present. 'No excuses'
BBC Middle East Editor Jeremy Bowen says the faint hopes raised in Annapolis, Maryland began fading after Israel promptly announced plans to expand a settlement on occupied land between Jerusalem and Bethlehem.
DONOR PLEDGES European Union: $650m (450m euros; £320m) in 2008US: $555m in 2008France: $300m over three yearsGermany: $290m over three yearsJapan: $150m South Korea: $13m over three years ICRC demands action
Settling people on occupied land is illegal under international law.
Under the US-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.
Mr 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."
'Indispensable' pledges
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."
US 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.
Gaza is dependent on aid from the international community Mechanics of peace talksAnalysis: After Annapolis
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.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.
Gaza is dependent on aid from the international community ICRC demands actionMechanics of peace talksAnalysis: After Annapolis
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.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.
BBC Middle East Editor Jeremy Bowen says the faint hopes raised in Maryland are already fading.
Israel returned from Annapolis and promptly announced plans to expand a settlement on occupied land between Jerusalem and Bethlehem, our correspondent says.
Settling people on occupied land is illegal under international law.
The World Bank and several aid organisations 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.The World Bank and several aid organisations 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.
The US has announced it intends to pledge about $555 million (£275m) for 2008 to the Palestinian Authority.
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.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.
Economic lifeline 'Turbulence'
The Palestinian prime minister has said he wants 70% of the aid to go directly to slashing his huge budget deficit. As she made her way to Paris, the US 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% 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.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 moderate Palestinian President Mahmoud Abbas. 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 Mr Abbas's rivals in the Islamic militant group Hamas seized control of the territory by force in June.Gaza has been virtually cut off from the world since Mr Abbas's rivals in the Islamic militant group Hamas seized control of the territory by force in June.