Subject: U.S. Assistance to the Palestinian People

To: DOSPRESS@LISTS.STATE.GOV

 

                                                           

 

U.S. Assistance to the Palestinian People                                     

                                                                       

                                                                       

C. David Welch, Assistant Secretary for Near Eastern and North African Affairs

                                                                       

Washington, DC                                                                

April 7, 2006                                                                 

                                                                       

(3:15 p.m. EDT)                                                               

                                                                       

                                                                       

MR. ERELI: Greetings, everyone. Thank you for coming. We have a limited time  

with our senior administration official so we'll get right into it. Assistant 

Secretary for Near Eastern Affairs David Welch is here to brief us on         

Palestinian assistance which we announced in the name of the Secretary at the 

briefing. David will give a brief overview then be available to answer your   

questions. We also have two other experts here who may be called upon if      

needed, Assistant Administrator for Near Eastern South Asia Jim Kunder and Mr.

Jonathan Schwartz from our Office of the Legal Advisor if there are any       

questions in their area of expertise.                                         

                                                                       

So, David, please, thank you.                                                 

                                                                       

AMBASSADOR WELCH: Thank you, Adam. Hi, everybody. You have seen our statement 

today and we are making ourselves available to answer any questions you might 

have in follow up to that. As you know, we've done quite a bit of work to build

a substantial international consensus about the direction of policy now that  

Hamas won an election on January 25th to the Palestinian Legislative Council  

and now that it has formed a new government for the Palestinians. This is     

embodied in statements going back to January 30th by the Quartet which have at

their center three principles. Those principles are that any Palestinian      

government should accept the right of Israel to exist. Second, that in order to

pursue a two-state solution it has to proceed in negotiations free of violence

and terror. Third, that negotiation ought to pay some respect to and deference

to the previous body of work to build Israeli-Palestinian peace. In particular,

the new government -- any new government ought to take up the obligations and 

undertakings of its predecessors. Those are in UN resolutions, Arab League    

initiatives, the roadmap, et cetera.                                          

                                                                       

So we have that as an element of policy. Regrettably so far, the new Hamas    

government has not answered on any of those principles with anything that could

approximate a yes. Accordingly and at the direction of our principles here,   

we've undertaken a review of U.S. assistance programs to the West Bank in Gaza.

And we made an announcement today in respect of that which will mean that we  

will focus now our -- we will renew our focus on humanitarian assistance, and 

particularly health, food and education to the Palestinian people directly.   

                                                                       

As you all know, most American assistance has traditionally been provided     

directly to the Palestinian people through contractors and NGOs. Only on very 

rare exceptions have we provided any assistance to the Palestinian Authority  

itself. So we will not do that in the future, as long as the Palestinian      

Government under the Hamas leadership does not accept these three conditions. 

                                                                       

With respect to other major donors, in particular the European Union, I think 

they'll be meeting next week to flesh out their own review of assistance      

programs. We remain committed to the vision that President Bush has laid out  

for a two-state solution. But as I said absent a commitment by the Hamas      

government to these preconditions, we cannot see them as a partner for peace. 

This would mean, therefore, that we'll have to redirect a substantial portion 

of our assistance program to principally humanitarian assistance.             

                                                                       

We've begun consultation with Congress on this and that will be proceeding. In

fact, I'll be back up there in a few minutes to continue conversations with our

appropriators on the subject. Anything we do will not only be done in         

consultation with Congress, but with the appropriate notification as is typical

when we change assistance programming.                                        

                                                                       

We also will direct some assistance to supporting a democracy in civil society

and independent institutions. We think this latter element is critical, since,

while Hamas did gain a majority in the PLC to form a government. It won by 44 

percent of the vote. In other words, approximately 55 or 56 percent of        

Palestinians did not vote for Hamas. We, as you know, have a no-contact policy

with Hamas before the election. And we have reviewed that policy and we have  

reasserted it. In addition, we have strengthened our process for vetting any  

recipients of assistance so that we don't trip over either law or policy in   

this regard.                                                                  

                                                                       

Our message to the international community will be first by this review in    

showing that through discipline and rigor we can look carefully at this kind of

assistance and suggest that it be directed to humanitarian pursuits, rather   

than to supporting any government. We call upon others in the international   

community to join us in that direction.                                       

                                                                       

There may be from time to time a highly limited exception for a reason which we

have not foreseen. We do have an overriding U.S. national interest, for       

example, in combating the avian flu epidemic and in close coordination with our

Palestinian friends, other donors and the Israeli government, we have responded

to a request for assistance for avian flu -- this is in-kind assistance, not  

financial assistance -- and to address what is a very highly unique problem.  

                                                                       

This, I think, is just a quick encapsulation of what was behind the statement 

we issued and I'd be delighted to take any questions you have. I'm sorry. I'm a

little more rushed than I would like to be because of scheduling that I didn't

foresee.                                                                      

                                                                       

MR. ERELI: Let's go to --                                                     

                                                                       

QUESTION: I'm sorry, but I don't understand the figures. And you -- we were   

said that the humanitarian assistance is rising by 57 percent to 245 million  

and we had a figure before of 150 million through USAID plus 84 million through

UNRWA, so I don't understand.                                                 

                                                                       

AMBASSADOR WELCH: Well --                                                     

                                                                       

QUESTION: Well,it was 234, so it's not --                                     

                                                                       

AMBASSADOR WELCH: Okay. Well, I'm not sure about all the previous data, but let

me give you what I understand to be the numbers. I'll do this quickly and if  

you have any follow-up, maybe I can turn it to my colleague Jim Kunder after I

leave, just to clean up the data. Now let me take from the position before the

election to the position after the election. And basically, we're going from a

pre-election planned expenditure of U.S. assistance in the basic human needs  

category of $153 million approximately to a post-election planned figure of   

240. That is a 57 percent increase in humanitarian assistance. Please bear in 

mind that that's subject to consultation, notification to Congress.           

                                                                       

A substantial portion of that would be through UNRWA. Before the election we  

had planned to assistant UNRWA in the neighborhood of $100 million.           

Post-election we plan to increase that to over $130 million, a 30 percent     

increase, roughly speaking, in funding for UNRWA. Food assistance would be    

another large category. Pre-election, we were planning on spending around $10 

million. Post-election, it'll be around $60 million, depending on if you count

USDA programs in that or not. That's quite a large leap in assistance. There  

are a few other categories that build up to the total of 240. As I mentioned  

earlier, we do have democratization programs underway with the Palestinians.  

That pre-election figure is around 29 million; post-election it would be 42   

million. Again, a substantial boost there.                                    

                                                                       

QUESTION: Now the 42 million that are supposed to -- you are saying openly it's

for the support of the moderation and finding alternatives for Hamas. How could

this be read except for basically calling for ousting Hamas and why is it not 

possible to direct the 130 million to the same ministry for infrastructure    

projects, sir?                                                                

                                                                       

AMBASSADOR WELCH: Well, we haven't made exact decisions on how precisely we   

will use the suggested democratization funding. But I would disagree with you 

that it is to, you know, deal directly with the Hamas victory in the manner in

which you described it.                                                       

                                                                       

QUESTION: What do you do to find alternatives for Hamas?                      

                                                                       

AMBASSADOR WELCH: It says to find alternatives to Hamas. That's the important 

point --                                                                      

                                                                       

QUESTION: (Inaudible) in Hamas.                                               

                                                                       

AMBASSADOR WELCH: Let me complete my answer, if I may. Fifty-five percent of  

those who voted in this last election did not vote for Hamas, so they're out  

there searching for other vehicles and alternatives to express their political

wishes. We think to continue to build the institutions of democracy is a very 

important endeavor and to give them some hope that their voice can be heard,  

particularly when we believe that Hamas as a government is going to have great

difficulty meeting the aspirations of the Palestinian people.                 

                                                                       

Precisely how we do that, we will look at both the existing programs we've had

underway and reevaluate whether those are effective in this regard. We also may

propose some new ones.                                                        

                                                                       

MR. ERELI: Anne.                                                              

                                                                       

QUESTION: Does -- their 165 million, I understand, is -- Sean said at the     

briefing money that you're still figuring out what's going to happen? Can you 

expand that a little bit?                                                     

                                                                       

AMBASSADOR WELCH: Yes.                                                        

                                                                       

QUESTION: What does that cover and what are your options?                     

                                                                       

AMBASSADOR WELCH: There will be some things suspended or cancelled, some that 

are subject to further review, and then this redirected amount that I've spent

most of the time describing. In the area of infrastructure where we had done a

fair amount of direct programming, because of the difficulties of doing that  

without interacting with the cabinet and ministries of a Hamas government,    

we've elected to suspend or cancel most of that work. There could be some     

aspects of it that we may permit to go forward after this review; for example,

infrastructure support to help make more efficient the crossings between the  

Palestinian territories and Israel. But again, we haven't made all those      

decisions yet.                                                                

                                                                       

MR. ERELI: Elise.                                                             

                                                                       

QUESTION: A lot more money is going to go to UNRWA, as you noted, and even    

before this all happened with the election there was always a question as to  

whether UNRWA could accept an increased capacity, that they had certain       

limitations as to their structure and things that you didn't know if they could

bear the additional funding to be able to handle those projects.              

                                                                       

Have you given any thought to that and whether you would actually fund helping

increase their capacity so that -- or are you looking at other organizations to

help with this humanitarian work?                                             

                                                                       

AMBASSADOR WELCH: That's a very good question, Elise, and I think part of your

question has to be answered by UNRWA as to what they see as their capacity    

headroom. But we took a look at our regular budget support for UNRWA. As you  

know, we are a very large contributor. I think the amount budgeted in this    

fiscal year that we have underway now is around 80 million. They have an      

emergency appeal. I think they have those annually. Am I correct in that? And 

so we will probably meet part of the emergency appeal.                        

                                                                       

UNRWA is, for us, is an attractive vehicle because it has experience on the   

ground, we have some accountability mechanisms with which we have some        

experience in making sure our money gets to the right place and is not misused,

and in addition it's immediately available. So while there may be a capacity  

question, at least in the immediate term they can also use the assistance if  

it's provided to them, and it's very quick-acting in that regard.             

                                                                       

Also, UNRWA's services two-thirds of the population in Gaza and one-third of  

the population in the West Bank in addition to Diaspora communities as well.  

That's a pretty substantial population pool. So if we're directing our        

attention to supporting the Palestinian people, we think this would be an     

effective and quick-acting vehicle to do so.                                  

                                                                       

MR. ERELI: We have time for a couple more. Charlie.                           

                                                                       

QUESTION: David, can you explain in policy terms compared to the dollars how  

you're going to support President Abbas and not support the Hamas-led         

government? And is there any money directly for President Abbas at this point?

                                                                       

AMBASSADOR WELCH: Well, first of all, we do support President Mahmoud Abbas.  

The PA Government under a prime minister has been tainted by the fact that    

Hamas, a terrorist organization, now controls it. This is fully and totally a 

Hamas government, from the prime minister through the cabinet on down to the  

people who work in those ministries. We will have no association with the     

government.                                                                   

                                                                       

By contrast, the president, the presidency and entities reporting to the      

president are segregated from Hamas and that part of the Palestinian Authority

is untainted by their presence in government. That said, we have not made a   

decision on whether to assist those elements in any regard at this time. We may

come back and revisit that choice, Charlie, but we haven't made it yet.       

                                                                       

There are also a variety of independent entities where governmental structures

that were out there even before Oslo, for example -- municipalities,          

governorates, the central election commission, the attorney general and       

judiciary -- all these are bodies that in and of themselves are independent of

the government and we can look at alternatives for assistance there.          

                                                                       

But so far, what we're doing is concentrating our attention on the humanitarian

aspect.                                                                       

                                                                       

MR. ERELI: Teri.                                                              

                                                                       

QUESTION: But no money for President Abbas now?                               

                                                                       

AMBASSADOR WELCH: Not now. But I don't rule it out. I don't rule it in.       

                                                                       

QUESTION: Could you tell us more about this deal that you mentioned on the    

assistance for avian flu, the in-kind assistance? And does this indicate that 

you see in-kind assistance to the Palestinian Government as different than    

money and/or is there some way that this is not going to --                   

                                                                       

AMBASSADOR WELCH: No, all it indicates to you -- should indicate to you -- is 

not a remark about the vehicle but a remark about the urgency of the problem  

and a recognition that avian flu knows no national dimension, it follows      

migratory bird patterns, and that there is an urgent need to deal with it,    

especially in the Gaza context.                                               

                                                                       

QUESTION: (Inaudible) practical (inaudible) do that?                          

                                                                       

AMBASSADOR WELCH: Jim Kunder could do that, if you don't mind, afterwards. But

you know, it's basically, I think protective suits and we just turn them over 

to those who are responsible for doing the culling and the destruction of the 

birds there.                                                                  

                                                                       

MR. ERELI: Cam.                                                               

                                                                       

QUESTION: David, on Anne's question, I want to follow up on the 165 million   

that's still hanging out there. Is there any thought or how much that has been

put into so far, the idea of maybe creating a trust fund that could be used as

a carrot instead of sending that money back to Treasury? Does that create     

problems?                                                                     

                                                                       

AMBASSADOR WELCH: For now, all we have done is either suspended or canceled   

certain program activities. That, for the most part, is a decision that is in 

our hands. When you get to the question of what you do with the funds, it's   

complicated because there are different budget years implicated, there are    

different procedures in that respect for consulting and then notifying        

Congress. So the answer to your question is short. It is no, we have not made 

those decisions yet. We've put that money, generally speaking, in abeyance    

because we cannot spend money on certain activities that would have us        

interacting with or supporting a Hamas government.                            

                                                                       

QUESTION: Are you actively looking at a way, a mechanism, that might create an

incentive for Hamas?                                                          

                                                                       

AMBASSADOR WELCH: Well, we would like to be in a position where either are    

conditions to be met or there would be a different government that would be   

able to step back in and provide assistance to what we think were some        

legitimate needs and uses. But we're not at that point yet.                   

                                                                       

MR. ERELI: Let's do one question with (inaudible).                            

                                                                       

QUESTION: Sir, under what condition you think some money could go direct to   

President Abbas and do you think there is a plan to invite him to come to     

Washington (inaudible)?                                                       

                                                                       

AMBASSADOR WELCH: Well, you know, as I said, we support the president. He has 

indicated that his policy is one where he is calling for a negotiated peace   

that aims at a two-state solution. He wants to proceed within an environment of

no violence and no terror. And he's one of the architects personally of the   

Oslo process, so under his leadership the presidency subscribes to those      

conditions. Those are his conditions. The international community has adopted 

them in a certain fashion and that's what we expect to be adopted by any      

Palestinian government and especially this one.                               

                                                                       

We'll continue our relationship with President Abbas and that includes meeting

him. As you know, I was just out there and saw him in Amman, Jordan, just a few

days ago and I expect we'll do that kind of thing in the future. Whether      

there's any possibility of a visit here, that's not under discussion right now.

                                                                       

QUESTION: So why aren't you giving him money?                                 

                                                                       

AMBASSADOR WELCH: I didn't say we weren't. I said we made -- because right now

we're focused on what we consider to be the important humanitarian needs in   

front of us. We may make that decision in the future. Don't rule it out.      

                                                                       

MR. ERELI: Let's do one more question. Steve.                                 

                                                                       

QUESTION: To what extent after your travels can you say that this approach is 

now going to be adopted by the Europeans and maybe the Arabs? In other words, 

reprogramming money away from the day-to-day operations of the authority and  

into these humanitarian efforts delivered by other agencies? In other words,  

the European Union is indicating that their cutoff is about to occur in advance

of the Monday meeting. What are your expectations, especially about Europe,   

since you've been in touch with them?                                         

                                                                       

AMBASSADOR WELCH: Well, first of all, I'll let them speak for themselves,     

Steve. I believe they're having a foreign minister's meeting on Monday which  

will address this policy and they may or may not come out with a statement    

afterwards. I expect there'll be some statement. Their presentation's been    

pretty consistent so far. They were, of course -- they subscribed as the EU to

the Quartet's decisions on January 30th. They have undertaken their own       

assistance review.                                                            

                                                                       

As you know, the European Union collectively is a very large -- a major donor 

to the Palestinians, including the Palestinian Authority. My understanding is 

that for them to continue that relationship would be very, very complicated. I

don't want to speak for them, but you can read into the Quartet statements    

you've seen so far the evolution of the attitude in that respect.             

                                                                       

There's also national assistance programs and in some cases those are quite   

considerable. In addition to -- you know, as member-states to the EU they have

these programs. And I think most of the major donors are going through a      

summary review process, as we are. Some have made decisions already. You may  

have seen a Canadian announcement, for example. I think the broad trend       

internationally is supportive of the direction in which we are going.         

                                                                       

On the one hand, people have very clear criteria for what any Palestinian     

Government ought to address and it's now Hamas's responsibility to address    

those. On the one hand, we are also very supportive of the humanitarian needs 

of the Palestinian people and we hope to see that those are satisfied.        

                                                                       

MR. ERELI: Thank you very much. Appreciate it.                                

                                                                       

AMBASSADOR WELCH: Thank you, all. Have a nice weekend.                        

                                                                       

                                                                       

2006/357