Palestinians reject Netanyahu's 'economic peace' plan
By Barak Ravid, Haaretz Correspondent Last update - 08:40 09/07/2009
www.haaretz.com/hasen/spages/1098858.html

Prior to the elections, Prime Minister Benjamin Netanyahu presented his
program for "economic peace," which he said would improved the quality of
life for Palestinians in the West Bank. However, 100 days after having
formed his coalition government, there is no practical progress on economic
projects.

The main reason for this is the refusal of senior Palestinian Authority
officials to cooperate with Netanyahu and Vice Premier Silvan Shalom, who
has been assigned the task of promoting the "economic peace" initiative.

The ministerial committee handling the matter met again Wednesday, deciding
to open the Allenby Bridge to traffic 24 hours a day to encourage
Palestinian imports and exports to Jordan.

Shalom also presented a list of projects that had been delayed for years due
to various bureaucratic difficulties. These include an industrial zone in
Bethlehem, (funded by France), as well as one near Jenin (funded by Germany
and another near Jericho (paid for by Japan). Netanyahu had instructed all
ministries to further his "economic peace" efforts by getting rid of red
tape.

Palestinians block progress

The committee also discussed the PA's role in blocking progress. In essence,
its senior officials are boycotting their Israeli counterparts.

PA President Mahmoud Abbas refuses to meet Netanyahu, and Prime Minister
Salam Fayyad will not meet with Silvan Shalom, while Palestinian officials
are not permitted to meet their Israeli counterparts.

"Israel wants to promote economic peace, and I am calling for increased
cooperation from the Palestinians," Shalom said during the meeting.

According to a senior political source, all contacts on economic issues with
Palestinian officials are carried out through the Quartet's special envoy,
Tony Blair. Even though the former British prime minister is pressing the
Palestinians to meet with the Israelis, he has been unsuccessful.

"The Palestinians are concerned that if they cooperate on economic peace,
Israel will be able to avoid the political process," the source said.

The Palestinian refusal to meet senior Israeli officials resulted in the
cancellation of a joint conference scheduled to take place in Tokyo on the
Jericho industrial zone.

It was to be attended by senior Japanese, Israeli, Jordanian and Palestinian
officials, but the Palestinians announced that at this stage they would not
participate, saying this stemmed from the lack of progress on the peace
process with Israel.