US to expand aid and contacts after Palestinian vote

WASHINGTON - The United States plans to boost aid to the Palestinians and is pressing Israel to release more Palestinian prisoners as part of a post-election push to revive peace talks, officials said today.

"The United States is standing ready to do a lot more," Secretary of State Colin Powell said as Palestinians voted for a successor to Yasser Arafat. They were expected to elect Mahmoud Abbas, who has promised to revive peace talks with Israel.

Powell urged Israel, as an initial confidence-building measure, to release more Palestinian prisoners.

"It is now time to get going on the road map," Powell told ABC's "This Week," referring to the stalled, US-backed peace plan.

The outgoing secretary of state also said President George W Bush should consider sending an envoy to the region "if we see the kind of progress that is possible in the next weeks or months".

Condoleezza Rice, Bush's nominee to replace Powell, is expected to visit Europe soon after her Senate confirmation to help co-ordinate Middle East peace efforts, officials said.

She is also considering making a trip early in the year to meet with Israeli and Palestinian leaders in the region, said sources close to the discussions.

Powell said the United States and others would step up with more financial aid "to help them with their economic development, and to help them reform their government so that they're ready to take over with these new institutions under new leadership."

Congressional aides said the Bush administration was considering a proposal to boost US aid to the Palestinians this year by US$200 million ($291 million) -- a more than twofold increase -- to help shore up support for the newly elected president.

The additional funding would help the Palestinians prepare for Israel's withdrawal from Gaza and is expected to be tied to Palestinian efforts in stopping violence and carrying out reforms.

Following Arafat's death, Bush provided US$20 million directly to the Palestinian Authority, but on condition the money be used to pay Israeli utility bills.

Powell said the United States, Egypt, Jordan and others would help rebuild the Palestinian security forces "so that they can take control of Gaza" when Israel withdraws later this year.

Palestinian Foreign Minister Nabil Shaath suggested on CNN that Bush could issue an invitation to both Israeli and Palestinian leaders "to come to the White House and discuss full implementation of the road map".

Officials said Bush was likely to take a more cautious approach, at least at first.

"I think we shouldn't be impatient. It's dangerous, because it may create inflated expectations that will not come true," Israeli Vice Premier Ehud Olmert said of the suggestion.

- REUTERS