Palestinian donors meet amid doubts on peace moves

London: Donor nations meet on Friday to discuss aid to the Palestinian Authority amid doubts about a US-backed Middle East peace effort.

US Secretary of State Condoleezza Rice is expected to press Arab nations to make good on their pledges of aid, arguing that it is vital to support Palestinian President Mahmoud Abbas as he seeks to negotiate peace with Israel.

Speaking as she flew to London, where she will also have talks on Iran and Kosovo and a three-way session with Palestinian Prime Minister Salam Fayyad and Israeli Foreign Minister Tzipi Livni, Rice said the two sides were making progress.

"The fact that one can't see churning under the water I think has led people to believe that there is nothing --- no progress is being made," Rice said. "And I just think it's not right. I think they are making progress."

Of $717.1 million in budget support for the Palestinians promised by Arab League members, only $153.2 million has been delivered, all of which came from three countries: Saudi Arabia, the UAEs and Algeria.

From London, Rice travels to Israel and to the Palestinian territories this weekend to push for Middle East peace. She said it was too early to give up hope for a peace deal by 2009.
"I do believe that the window for the two-state solution will not be forever open and in fact I think you could argue that it has gotten narrower and narrower over time," she said. But she added: "I think it is far too early to start [having] any sense of despair about the end of the year."