Military

DATE=7-16-02

TYPE=CORRESPONDENT REPORT

TITLE= MIDEAST QUARTET-ISRAEL (L-ONLY)

NUMBER=2-292109

BYLINE=DAVID GOLLUST

DATELINE= STATE DEPARTMENT

CONTENT=

VOICED AT:

INTRO: The international diplomatic "quartet" on the Middle East -- the United States, Russia, European Union and the United Nations -- have called on Israel to match Palestinian moves toward reform with action easing living conditions for the Palestinians in the West Bank and Gaza. The appeal came at the group's meeting Tuesday in New York. V-O-A's David Gollust reports from the State Department.

TEXT: U-S officials say the Israeli security crackdown in the West Bank and Gaza has created unprecedented humanitarian problems including cases of child malnutrition in the Palestinian population and unemployment in some places exceeding 70 per cent of the work force.

The joint statement of the "quartet," while stressing the need for far-reaching Palestinian reform, also calls on Israel to take "concrete" immediate steps to improve condition and support the emergence of a viable Palestinian state including the easing of internal closures in certain areas and the release of impounded Palestinian tax revenues.

The four parties said that as security conditions improve, Israel should take further reciprocal action leading to a withdrawal of its troops to the lines that existed before the outbreak of sustained Israeli-Palestinian violence in late September of 2000.

At a New York news conference with U-N Secretary General Kofi Annan and his Russian and E-U counterparts, Secretary of State Colin Powell said he thinks Israeli Prime Minister Ariel Sharon who discussed the situation by telephone with Mr. Annan earlier Tuesday would be willing to respond in kind as violence and terror subside in the Palestinian areas:

///POWELL ACTUALITY///

Obviously, Israel is a sovereign country and will have to reach its own decisions and make its own conclusions. But from what I know of the Israeli attitude and my conversations with the prime minister and others and just making reference to the conversation that the Secretary-General had with the prime minister earlier he is anxious to move forward as well. I don't think he wants to see the Israeli Defense Force serving as an occupying force with all the responsibilities with that kind of a role for the indefinite future. It is in his interest to find a way to move forward, just as it is in our interest and the interest of the Palestinian people.

///END ACT///

Secretary-General Annan said Mr. Sharon, in his telephone call, told him he wanted to see a "worldwide humanitarian operation" to alleviate the plight of the Palestinian people.

Mr. Annan said the "quartet" members agreed that giving humanitarian groups full access to Palestinian areas re-occupied by Israeli forces would be the fastest way to begin improving the plight of the people there. He said the Sharon overture, while welcomed, is not a substitute for other steps being urged upon Israel by the international community.

A senior U-S official told reporters in New York Israel has impounded about 600 million dollars of tax revenues due the Palestinian Authority.

He said the United States has been involved with both parties on setting up a "transparent mechanism" on how that money can be put to use for the benefit of the Palestinian people without the danger of diversion to corrupt officials. He said one aspect of such a plan might be direct payment of the frozen assets to companies and institutions in the West Bank and Gaza owed money by the Palestinian Authority.

///REST OPTIONAL///

Secretary Powell indicated at the news conference that progress was being made in behind-the-scenes U-S talks with Israel and the Palestinians on restoring security cooperation and restructuring Palestinian security forces.

E-U chief diplomatic Javier Solana said a team led by a senior U-S intelligence official would go to the Palestinian areas within two weeks to expedite the re-structuring effort, and that security officials from Egypt, Jordan and Saudi Arabia would later join in the process. (Signed)

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