Military

DATE=1/12/2004

TYPE=CORRESPONDENT REPORT

TITLE=PALESTINIANS / AID (S-O)

NUMBER=2-311752

BYLINE=ROSS DUNN

DATELINE=JERUSALEM

CONTENT=

INTRO: Palestinian officials and non-government organizations have rejected a U-S demand that they repudiate terrorism in order to receive financial aid. Ross Dunn reports from Jerusalem.

TEXT: Palestinians are refusing to sign the U-S Agency for International Development's Certification Regarding Terrorist Financing.

The requirement, first introduced last year, is aimed at preventing U-S funds from being transferred to entities engaged in terrorist acts. Several Palestinian groups are on the U-S list of terrorist organizations.

The Palestinian finance minister, Salam Fayyad, says that the Palestinian Authority opposes all forms of terrorism.

But, he says, the Palestinian Authority objects to the U-S-A-I-D's new terms as a pre-condition for receiving aid. Palestinian non-government organizations have adopted the same stand.

Palestinian officials say that U-S-A-I-D donated about 30 million dollars to Palestinian N-G-Os last year to promote democracy and for welfare services.

The Palestinian officials say they intend to raise the issue again with U-S officials at a meeting scheduled later this week in the West Bank city of Ramallah. (SIGNED)

NEB/RD/MAR/KL/KBK