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Paris hosts Mid-East donor talks '$7bn pledged' in Palestinian aid
(about 3 hours later)
Officials from 68 countries in Paris have pledged a multi-billion dollar aid package for Palestinians, in the biggest such meeting for a decade. Foreign aid of at least $7bn (£3.5bn) has been pledged to the Palestinians at a major donors' conference in Paris, France's foreign minister has said.
To help set up a viable Palestinian state, Palestinian President Mahmoud Abbas wants $5.6bn (£2.8bn) by 2010. The figure cited by Bernard Kouchner exceeded the $5.6bn over three years which Palestinian President Mahmoud Abbas had asked for.
He warned the one-day donors' summit that Palestinians were facing a "total catastrophe" and challenged Israel to freeze all settlement activity. The pledge by 68 states and organisations came at the biggest such meeting in a decade.
Hamas was not invited but called the talks a "declaration of war" on it. The money is earmarked for creating a viable Palestinian state.
"This was very clear in the speeches," said Sami Abu-Zuhri, spokesman for Hamas. But the package was rejected by Mr Abbas's rivals, Hamas.
"[French President Nicolas] Sarkozy, for example, called on the Palestinians to unite behind Abbas and said there would be no peace with a group that refuses to recognise Israel - meaning Hamas," he said. The Islamist group, which wrested control of the Gaza Strip from Mr Abbas in June, was not invited to the conference, which it called a "declaration of war" on it.
Sami Abu-Zuhri, a Hamas spokesman, pointed to a call by French President Nicolas Sarkozy at the talks for Palestinians to unite behind Mr Abbas and his statement that there "would be no peace with a group that refuses to recognise Israel - meaning Hamas".
Mr Abbas told the conference that without the aid, the Palestinian territories faced a "total catastrophe" and he challenged Israel to freeze all settlement activity.
'Moment of truth''Moment of truth'
Gaza, already suffering from an international boycott against Hamas after it won elections in early 2006, was plunged further into economic and political isolation after the Islamist militant group seized control of the territory amid a violent power struggle with Fatah this summer. US Secretary of State Condoleezza Rice in turn called for "the continued and unwavering support of the international community" for the Palestinian Authority.
Appealing for aid, Mr Abbas told donors in Paris a "moment of truth" had arrived. KNOWN DONOR PLEDGES European Union: $650m in 2008US: $555m in 2008France: $300m over three yearsGermany: $290m over three yearsJapan: $150m South Korea: $13m over three years class="" href="/1/hi/world/middle_east/7148175.stm">Where will the aid go? class="" href="/1/hi/world/middle_east/7141875.stm">ICRC demands action
"Without the payment of aid... we will be facing a total catastrophe in the West Bank and Gaza," he said. "This conference is literally the government's last hope to avoid bankruptcy," she said.
DONOR PLEDGES European Union: $650m in 2008US: $555m in 2008France: $300m over three yearsGermany: $290m over three yearsJapan: $150m South Korea: $13m over three years class="" href="/1/hi/world/middle_east/7148175.stm">Where will the aid go? class="" href="/1/hi/world/middle_east/7141875.stm">ICRC demands action Monday's summit follows last month's US-backed Middle East conference in Annapolis, Maryland, which launched negotiations aimed at creating a Palestinian state within the next 12 months.
US Secretary of State Condoleezza Rice underlined those words and called for "the continued and unwavering support of the international community".
"The Palestinian Authority is experiencing a serious budgetary crisis," she told the gathering. "This conference is literally the government's last hope to avoid bankruptcy."
Monday's summit follows last month's US-backed Middle East conference in Annapolis, Maryland, which launched negotiations aiming to create a Palestinian state within the next 12 months.
A key element of the renewed peace talks is the US-backed road map, which requires Israel to freeze settlement-building activity and the Palestinians to disarm militants.A key element of the renewed peace talks is the US-backed road map, which requires Israel to freeze settlement-building activity and the Palestinians to disarm militants.
After the Annapolis talks, Israel unveiled plans to expand a settlement on occupied land between Jerusalem and Bethlehem.After the Annapolis talks, Israel unveiled plans to expand a settlement on occupied land between Jerusalem and Bethlehem.
Mr Abbas told the conference that both the Palestinians and Israelis should each meet their road map commitments "without excuses".Mr Abbas told the conference that both the Palestinians and Israelis should each meet their road map commitments "without excuses".
Israeli Foreign Minister Tzipi Livni told the summit that Israel was committed to its obligations, "including in relation to settlement activities".Israeli Foreign Minister Tzipi Livni told the summit that Israel was committed to its obligations, "including in relation to settlement activities".
She said: "We do not want the image of Israel in the Palestinian mind to be a soldier at a checkpoint". "We do not want the image of Israel in the Palestinian mind to be a soldier at a checkpoint," she added.
'Abhorrent conditions''Abhorrent conditions'
The aid package formally includes Gaza, but analysts say most of the money will go to the West Bank, which is controlled by the moderate Palestinian president. The aid package formally includes Gaza, but analysts say most of the money will go to the West Bank, controlled by Mr Abbas.
Gaza is dependent on aid from the international community Mechanics of peace talksAnalysis: After AnnapolisGaza is dependent on aid from the international community Mechanics of peace talksAnalysis: After Annapolis
UN Secretary General Ban Ki-moon told the summit that people in Gaza were living in the "most abhorrent conditions" that had "devastating effects on the economy and on family livelihoods".UN Secretary General Ban Ki-moon told the summit that people in Gaza were living in the "most abhorrent conditions" that had "devastating effects on the economy and on family livelihoods".
The new envoy of the Quartet of Middle East peace negotiators, ex-UK Prime Minister Tony Blair, told donors their pledges would be "indispensable" to the creation of a Palestinian state.The new envoy of the Quartet of Middle East peace negotiators, ex-UK Prime Minister Tony Blair, told donors their pledges would be "indispensable" to the creation of a Palestinian state.
The biggest pledges came from the European Union and the US, which promised $650m and $555m respectively.The biggest pledges came from the European Union and the US, which promised $650m and $555m respectively.
It is the biggest gathering of its kind since 1996.It is the biggest gathering of its kind since 1996.
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.