Panetta says Washington opposes aid cut to Palestinians

Oct 3, 2011, 17:25 GMT

Tel Aviv - US Defence Secretary Leon Panetta said Monday that the administration of President Barack Obama opposed a decision by Congress to withhold funds to the Palestinian Authority, after the PA defied a Washington request and went ahead with a bid for UN membership.

Congress reportedly blocked the transfer of 200 million dollars in aid to the PA, but Panetta said at a news conference in Tel Aviv Monday that this 'critical time' was not 'a time to withhold those funds.'

He said the money had helped Palestinians improve their security apparatus, which ultimately helped Israel as well by preventing attacks by militants.

Panetta, making his first visit to the region in his new post, arrived in Israel earlier in the day and met shortly afterward with his Israeli counterpart, Ehud Barak.

In a joint news conference after the parley, he urged countries in the region to work together to enure that Iran, currently pursuing nuclear capability, did not become a threat.

The US, he added, was 'concerned' and would do whatever was necessary to ensure Iran did not threaten the region.

Israel regards Iran as its biggest existential threat, because of its pursuit of nuclear weapons and President Mahmoud Ahmadinejad's repeated statements that Israel has no right to exist.

Israel has been the focus of recurring speculation that it might attack Iran to foil Tehran's nuclear programme.

In 2009, President Obama sent Panetta, at the time head of the CIA, to Israel to warn Israeli leaders not to take unilateral military action against Iran.

Prior to his arrival in Israel, Panetta told reporters traveling with him that he planned to urge Israel to 'participate in the peace process' and would 'make the same kind of request' when he met with Palestinian leaders.

He said the main purpose of his trip, which also encompasses Egypt and the NATO headquarters in Brussels, was 'to try and reaffirm our security relationship with important allies and with important partnerships.'

He added that it was important to let Israelis know that the United States would provide Israel with the security it needed to engage in negotiations with the Palestinians.

Israeli Prime Minister Benjamin Netanyahu has made security guarantees a main Israeli requirement of any possible peace deal.

The talks have been stalled for over one year.

Palestinian President Mahmoud Abbas has said the talks cannot resume until and unless Israel resumes a moratorium on new settlements and freezes construction in East Jerusalem.

Netanyahu has so far refused to order a new construction freeze. With negotiations stalled, Abbas requested on September 23 that the United Nations accept Palestinian membership of the world body, in effect recognising a Palestinian state.

Israel and the US oppose the move, saying a Palestinian state could only come about as the result of direct negotiations between the parties. Washington said it will veto the move if it comes up for a vote in the UN Security Council.

Netanyahu, meeting Panetta late on Monday, repeated his call for direct talks, telling Panetta to encourage Abbas to enter into direct negotiations without preconditions, a statement from Netanyahu's bureau said.

But the Palestinian Wafa news agency reported that Abbas had told the defence scretary at their meeting that the Palestinians would only begin talks once Israel met their conditions: stopping construction at its West Bank settlements and accepting the pre-1967 lines as the basis for a two-state solution.

Read more about US