Palestinian Authority Facing Financial Collapse
Palestinian Authority Facing Financial Collapse
U.S. TELLS SHARON: PA FACING FINANCIAL COLLAPSE
By Aluf
Benn
Posting with permission from: http://www.MiddleEast.Org
[Ha'aretz - 9 February]:
The difficult financial
situation faced by the
Palestinians as a result of the
Intifada and Israel's
punitive steps heads the list of
diplomatic issues for
Prime Minister elect-Ariel Sharon.
The matter was the
center of discussion during Sharon's
meeting Friday
with American Ambassador to Israel, Martin
Indyk, and
United Nations Middle East envoy Terje Larsen.
According to sources in Sharon's office, the
American
government estimates that the Palestinian
Authority
will collapse within three months if the
current
situation continues. Larsen also warned that "The
PA
is about to collapse," and presented data to Sharon
on
Arafat's depleted accounts that somehow must pay
the
salaries of about 100,000 public workers on the
PA's
payroll.
Sharon repeated his opposition to
collective
punishment, but demanded that the Palestinians
end the
terrorism and gunfire. Larsen said that Arafat
"has
lost control," to which Sharon replied, "If Arafat
has
lost control, then it is even more important that
he
act quickly. We do not want anarchy."
"I have
decided to work to bring peace, but that
requires that
the other side fulfills its
obligations," the prime
minister-elect said.
"Confidence-building steps must come
from both sides."
Indyk delivered a letter to Sharon from
U.S. Secretary
of State Colin Powell expressing America's
tradition
of support for Israel's security and the
commitment to
maintain the country's qualitative military
edge in
the region. The letter also said that the U.S.
strives
to continue the peace process in coordination
with
Israel as well as to develop a system of
strategic
relations.
Powell wrote that Washington
dispatched messages to
Arab leaders urging them to
restrain themselves and to
give Sharon an opportunity to
prove his intentions.
The letter also related to the U.S.
government's
concerns about the security situation in the
region,
especially the spread of non-conventional weapons
to
Iran and Iraq.
ENDS