US Sends Warning to Israel by Cutting Loan Guarantees

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by Rupert Cornwell
The Independent

In the clearest signal yet of Washington's displeasure with Israel's policies in the West Bank and Gaza, the Bush administration has cut $290m (£170m) from US loan guarantees to the Jewish state, an amount similar to spending on new settlements in the occupied Palestinian territories.

Palestinians have criticised the sum as too small to exert real pressure on the government of Ariel Sharon. Direct US aid to Israel of $3bn a year is not affected. Even so, it is seen as evidence that after several months, the White House is responding to pressure from allies in Europe and the Middle East to "re-engage" in the region.

A senior American official is believed to have met the Israeli Prime Minister in Rome last week to deliver a fresh demand for a halt of settlement activity and construction of the barrier through the West Bank. Mr Sharon said later he was considering "unilateral steps" to advance the peace process.

William Burns, the chief US Middle East envoy, returns to the region tomorrow for the first time since August.

Middle East specialists see a glimmer of opportunity for progress on peace, with the installation of a new Palestinian Prime Minister in Ahmad Qureia, and mounting pressure from within Israel for Mr Sharon to change tack.

Dennis Ross, the US Middle East envoy under presidents George Bush Snr and Bill Clinton, said in yesterday's Washington Post: "There is again an opening to end the past three years of warfare. Both sides want to end the war and create a period of calm."

But familiar obstacles remain, most notably from the US-Israeli point of view, the Palestinian President, Yasser Arafat, with whom neither the Bush administration nor Mr Sharon will deal. Mr Arafat still controls the Palestinian security apparatus, and was powerful enough to force from office Mr Qureia's predecessor, Abu Mazen, formally known as Mahmoud Abbas.

Representatives of Hamas and Islamic Jihad are expected to meet in Cairo next week to agree a ceasefire, the Israeli pre-condition for any progress. But further attacks cannot be ruled out. And even if Mr Qureia can persuade the main militant groups to agree a truce, he will be able to deliver only if he can point to reciprocal steps by the Israelis.

These will have to include not just an end to the present siege of Palestinian territories and the checkpoints that enforce it, but a halt to construction of the border "fence" and a suspension of settlement activities. The Palestinian public, Mr Ross said, must be shown that Mr Qureia and other reformers, can "deliver", by changing Israel's behaviour.

In London last week, President Bush demanded Israeli action in all three areas. Washington is now following up by trimming the loan guarantees.

But it is unclear how much political capital Mr Bush will invest in the Middle East before next year's election. The pro-Israel stance of his administration is popular with the Christian right, a key Republican constituency.

Mr Ross warned: "If the moment of opportunity is lost and Ahmad Qureia fails, there won't be a third Palestinian prime minister who can emerge and create another diplomatic opening any time soon."
 

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stood up to the Jewish lobby? What's wrong? Did they forget to take their Prozac or something?
 

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It sez $9 billion here...


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UN chief condemns Israeli barrier

United Nations Secretary General Kofi Annan has described Israel's decision to construct the West Bank security fence as "deeply counter-productive".
His remarks have been published in a report called for by a UN General Assembly resolution last month.

The UN report says that as a result of the partition, Palestinians have lost access to land, hospitals and schools.

Israel argues that it needs the 600-km (320-mile) barrier to protect its citizens against suicide bombers.


Israeli Prime Minister Ariel Sharon vowed on Thursday to press ahead with the barrier, which stretches from north to south.

"We are speeding up the construction of the fence and we will not stop. It is vital for the security of the state and it is our responsibility," he said.

Mr Sharon did, however, appear to concede that Israel would be forced to give up some Palestinian territory in accordance with the US-backed roadmap, or peace plan.

Israel under pressure

Mr Annan said the fences, walls, razor wire and trenches constituted a violation of international law and could jeopardise longer-term prospects for peace.

"In the midst of the road map process, when each party should be making good-faith confidence-building gestures, the barrier's construction in the West Bank cannot... be seen as anything but a deeply counter-productive act," he said.

Israel is facing increasing international pressure to dismantle the barrier.

During last week's visit to London, US President George W Bush delivered an unusually sharp message about the construction of settlements and "the placement of walls and fences" which might prejudice final negotiations.

On Wednesday, the US said it was cutting nearly $290m from a loan guarantee package to Israel in response to its actions.

The money comes from a $9bn package of loan guarantees and does not affect Washington's direct aid for Israel.

The US move means Israel will not be able to raise as much money in loans from foreign banks.

http://news.bbc.co.uk/1/hi/world/middle_east/3247604.stm

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"....and does not affect Washington's direct aid for Israel....."

Which is bollox-talk for even MORE handouts, and thats just the official ones.

Why not just call the place a really posh heavily subsidised third world country.

Or the biggest welfare recipient in the middle east.

Its a funny old world.

Another S.Vietnam.
But once it had a Prime Minister that might have created peace and stability in the region.
Curiously, the Israeli secret service let a 20yr old kid sneak through the net and blow him away.
The present administration doesn't seem to have that kind of problem, curiously.

Ut sementem feceris ita metes. ~ As you sow so will you reap.----Cicero

[This message was edited by eek on November 28, 2003 at 09:00 PM.]
 

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God leased Israel to the Jews. Those countrys or companys or people who bless Israel will be blessed by God, and those who curse Israel will be cursed.
 

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Rail.

If you hadn't been born a christian nut.
You'd be an Islamic fruitcake.
 

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Wow a whole 290 million...I think they raise that much by selling Israeli bonds at the local posh country clubs. Why do people think the rest of the world hates us? The Palestinians are throwing rocks against the American made Apache helicopters that are shooting at them. The whole middle east quagmire gets one sided reporting in this country...and I wonder why. Now I'm no fan of Arafat or his thugs either..but the story overall needs more balanced reporting!
 

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