Meeting of the Ad Hoc Liaison Committee on Assistance to the Palestinians (AHLC)

Good morning.  I am very pleased to be here this morning to represent the United States, at this moment of renewed opportunity.  Let me repeat once again, Mr. Minister, our deep appreciation for the superb efforts of the Norwegian government and our Italian hosts.

Over the past two years, the AHLC has met in Oslo and in London and now in Rome.  The themes of our discussions have become depressingly familiar.  All of us have seen the toll taken on both sides in lives lost and families shattered.  And all of us have seen something less tangible, but no less troubling -- the loss of hope on both sides, the erosion of the dream of peace and reconciliation, the collapse of faith in a better future, a future in which two states, Israel and Palestine, live side by side in peace, security and dignity.  Time is not on the side of anyone interested in such a future, as demography and violence and facts on the ground and corrosive distrust draw Palestinians and Israelis further and further from the two state solution which is so deeply in their mutual self-interest.

Surely, Palestinians and Israelis deserve better than this.  Both peoples deserve a future that puts an end to terror and violence, a future that removes the daily threats to the security of ordinary Israelis who worry about whether their children will return safely from school or their spouses from the market, a future that preserves Israel as a strong and vibrant Jewish state.  Both peoples deserve a future that puts an end to the destructive impact of occupation and settlements, a future that stops the daily humiliations of life under occupation, a future that brings Palestinians their own state, responsible governance and the chance for the normal, dignified lives that they and their children must have.

Since our last meeting in London, we have seen moments of possibility.  At Aqaba last June, both Israelis and Palestinians committed themselves to the Quartet’s roadmap.  Palestinians began to make real progress on institutional reform, especially in the financial sector.  The emergence of the first Palestinian Prime Minister was cause for hope.  The United States deployed a monitoring mission, aimed at holding both sides to their obligations.  For the first time, the U.S. provided direct economic assistance to the Palestinian Authority, as a signal of our confidence in new leaders and a new sense of direction.  The opportunities seemed tantalizingly close.

Unfortunately, those hopes receded very quickly.  The truth is that all of us made mistakes last summer.  All of us were guilty of failures of imagination as well as implementation.  But now we have that rarest of moments in human conflict, another chance.  A new Palestinian government has emerged, professing renewed commitment to the roadmap and reform.  The Israeli government has also stated its readiness to make difficult choices in the pursuit of peace.  The two sides are re-engaging with one another.  The Quartet, and the whole of the international community, are ready to help.

Few of us have any illusions about what lies ahead.  Progress will be very, very hard.  The Palestinian Authority must make a maximum effort against terror and violence -- an effort far more serious than it has made in the past three years.   A ceasefire can be a significant step in that direction, but it is only one step in a process that must result ultimately in dismantling terrorist infrastructure, in accordance with the roadmap.  Terrorist acts must be prevented, and those who perpetrate them must be brought to justice.

In this regard, I want to speak plainly about the importance the United States attaches to investigating the murder of three of our diplomatic colleagues in Gaza last fall.  We are still waiting for results in that investigation.  Without progress, culminating in the arrest and conviction of those responsible, we simply cannot carry out our full range of assistance projects for the Palestinian people.  Without a more secure working environment, moving forward with large-scale programs -- such as the long-planned Gaza water infrastructure projects, and millions of dollars in road repair money ready to be disbursed in the spring -- will be impossible.  All the donors must have confidence that our personnel can carry out cooperation with the Palestinian people in reasonable safety.

It is fair for the Palestinian Authority to have high expectations of the donor community.  But it is also fair for donors to have high expectations for the Palestinian leadership.  Such expectations are not a favor to donors; they represent goals deeply in the self-interest of Palestinians preparing for statehood.  Performance on security is essential.  So is renewal of the reform program. 

We have noted carefully Prime Minister Qurei’s personal commitment to reform.  This is not a burden to be taken on lightly.  The list of tasks is daunting: direct deposit of PA salaries; movement on reform legislation; strengthening institutions; and progress toward a constitution.  All these steps move Palestinians closer to responsible statehood.

We also need to find a better way to combine urgently needed donor assistance with the reform process.  In this regard, we warmly welcome the presence of World Bank President Wolfensohn and look forward to the Bank’s thoughts on possible mechanisms to both mobilize donor resources and enhance accountability and performance on reform by the PA.

Israel obviously has obligations too.  These include the removal of unnecessary checkpoints and roadblocks; bolder measures to ease the economic and humanitarian crisis in the West Bank and Gaza; dismantling of illegal outposts; cessation of settlement activity; and minimizing the hardships produced by the separation barrier, whose route remains a matter of serious concern for the United States.

The truth is that both sides must do better, to ensure for donors both a secure operating environment and the freedom to operate.  With that important consideration in mind, the United States reaffirms today our commitment to the donor effort.  In 2003, we are providing over $250 million in assistance to Palestinians -- via our annual budget of $75 million in bilateral aid; a supplemental appropriation of $50 million; and contributions totalling $129 million to UNRWA, where we remain the largest single national contributor.  We look forward to doing even more in the years ahead.

Mr. Minister, ladies and gentlemen, it is long past time to get started on the roadmap.  Moving forward will require very hard decisions.  It will require courage and vision and compassion from leaders, and a willingness to speak plain truths to their peoples.  It will require the international community to supply a sense of purpose and determination and generosity.  And it will require all of us to understand that today, even in the grimmest of moments and the most bitter of circumstances, the outlines of enduring peace and security for Israelis and Palestinians alike are clearer than ever.

Thank you.