We will build barrier despite US loan penalty, says Israel

PALESTINIAN officials said yesterday an American decision to deduct $289 million from loan guarantees to Israel was insufficient to force Israel to stop building a security barrier or to end continued settlement construction.

We will build barrier despite US loan penalty, says Israel

The deduction, taken from $9 billion in guarantees promised over three years, reflected the amount Israel is spending on parts of the barrier that cut into the West Bank, as well as other Israeli construction there.

Palestinians reject the route of the Israeli security barrier deep into land they want for a future state, seeing it as an Israeli land grab.

Israel says the barrier is needed to protect it from Palestinian militants responsible for the deaths of hundreds of

Israelis over the past three years of violence.

"We want steps from the Americans that will definitely stop the settlements and the wall to give peace a chance," Palestinian Cabinet Minister Saeb Erekat said. "I'm afraid that this step, as a message, will not deter Israel."

A senior adviser to Israeli Prime Minister Ariel Sharon, Zalman Shoval,

confirmed Israel's intention to continue building the barrier "Israel is prepared to give up money when the subject is defending the lives of its people."

The loan guarantees allow Israel to borrow money at a more favourable rate. The deduction could cost Israel more than $4m a year in interest costs, said Ben-Zion Zilberfarb, a former director of Israel's Finance Ministry.

As part of its efforts to reinvigorate stalled peace talks, the US has been trying to pressure Sharon to make gestures to the Palestinians. Palestinian officials say they plan to secure a pledge from militant groups next week to halt all attacks against Israel which they will then present to Israel along with the demand for full implementation of the US-backed road map peace plan, Erekat said.

Palestinian factions, including Hamas and Islamic Jihad, have agreed to attend a conference beginning December 2 in Cairo, Egypt. The groups are expected to commit to a ceasefire at that time, Mr Erekat said.

Meanwhile, a 9-year-old Palestinian boy was shot and killed in the southern Gaza town of Rafah, hospital officials said. Residents said Israeli soldiers in a watchtower opened fire on a Palestinian neighbourhood, and the boy was in his house when he was shot in the head. Military sources said they knew of no shooting in the area.

More in this section

Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited