Israeli Payment Rejected

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Last updated at: (Beijing Time) Thursday, August 01, 2002

Israeli Payment Rejected

The Palestinians have refused an Israeli payment of US$14.7 million in unblocked customs duties and taxes because of conditions attached to its use, a senior Israeli official said Wednesday.

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The Palestinians have refused an Israeli payment of US$14.7 million in unblocked customs duties and taxes because of conditions attached to its use, a senior Israeli official said Wednesday.

The official, who asked not to be named, said Palestinian Finance Minister Salam Fayad refused to take the sum, part of US$430 million frozen by Israel for fear it would be used for anti-Israeli attacks.

Israel has sought a commitment that the money would not be given to the Palestinian police or Mr Yasser Arafat's Palestinian Authority.

'Salam Fayad doesn't want to accept the money because he refuses that the money would not finance Palestinian security services implicated in terrorism or end up in the pockets of Palestinian leaders,' the official said.

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