US cash for Palestinians

The United States and Palestinian Authority held a ribbon-cutting ceremony yesterday finalising a US$20 million ($34.2 million) US grant to strengthen the hand of Prime Minister Mahmoud Abbas in a new peace process with Israel.

"This is the first time we have ever given 20 million bucks straight to the Palestinian Authority," a US Embassy spokesman said, adding the money would be transferred electronically to the Palestinian Authority after the ceremony.

The US State Department approved the direct aid earlier this month to help restore and improve basic services in Palestinian areas that have been vacated by Israeli military forces.