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Israel shrugs off us loan cut { November 26 2003 } Original Source Link: (May no longer be active)    http://www.reuters.co.uk/newsPackageArticle.jhtml?type=worldNews&storyID=409352§ion=news http://www.reuters.co.uk/newsPackageArticle.jhtml?type=worldNews&storyID=409352§ion=news Israel shrugs off U.S. loan cut Wed 26 November, 2003 12:07 By Matthew Tostevin JERUSALEM (Reuters) - Israel has brushed aside U.S. loan cuts over a huge barrier and settlement expansion on occupied land, the latest nudge from its main ally to revive a stalled peace plan, but a move Palestinians has said is not enough. Momentum for more negotiations on the U.S.-backed peace "road map" has been building since a new Palestinian government took office earlier this month and after an unusually quiet spell during more than three years of conflict. Part of Tuesday's cut of nearly $290 million (171 million pounds) in a multi-billion package of loan guarantees corresponds to the costs of building a barrier singled out by U.S. President George W. Bush as unhelpful to peace negotiations. But Israeli Deputy Prime Minister Ehud Olmert shrugged it off. "The fact is they aren't putting any political pressure on us to do anything on the substantive issues of the political process," he told Army Radio on Wednesday. Palestinians said the funding cut would not make Israel change its plans. "I'm afraid that this step as a message will not deter Israel from continuing to build the wall and the settlements," said the Palestinian Negotiations Minister Saeb Erekat. Israel says it needs a barrier of concrete, razor wire, ditches and electric fences to stop suicide attacks that have killed hundreds. Palestinians call it a bid to claim land occupied during the 1967 Middle East war and say the Israelis must stop it if they are serious about the road map. SIGNS OF U.S. INTEREST In an unusually strong message last week, Bush said Israel should not prejudice talks with "walls and fences". In another possible sign of renewed U.S. interest in peacemaking, senior official William Burns is due to visit Israel and the Palestinian territories next weekend for the first time since August. The road map sees a series of steps by both sides that would lead to a Palestinian state by 2005, with guarantees for Israel's security, but it has been stalled since a truce by Palestinian militants collapsed amid violence in the summer. Hopes of fresh negotiations have been boosted since a new Palestinian government took office this month and after a seven- week spell without any major attacks. Palestinian groups meet in Cairo next week to discuss a new ceasefire. Talks between Israeli Prime Minister Ariel Sharon and Palestinian counterpart Ahmed Qurie are on the cards, but both sides say a lot of preparations are needed first. The noises from Washington have added to pressure on Sharon, facing the emergence of a series of unofficial peace plans as well as criticism from his own army chief and former heads of the secret service for not doing enough to bring peace. Hints of a "Sharon Plan" to remove some settlements and declare Israeli-set borders for a Palestinian state, if the road map fails, have been attacked by Palestinians and the big pro-settler movement in Sharon's own party.

Bureau recommends bush pressure israel on settlements { November 3 2003 } Bush lean on sharon { May 27 2003 } Bush problem with sharon { June 10 2003 } Bush says violence in the gaza strip is troubling Bush toughens stance on israel amid truce hopes { November 19 2003 } Bush troubled by israeli strike { June 10 2003 } Considering penalty for fence Israel defiant over barrier after bush criticism Israel shrugs off us loan cut { November 26 2003 } Israel suprised by rare rebuke of israel Israel unapologetic about gaza attacks Powell israel impediment to progress { June 23 2003 } Powell pressures israel over fence Powell requested harderline against sharon { November 16 2004 } State dept proposes cut israeli loans { August 4 2003 } Us chastises israel { June 10 2003 } Us may punish israel for fence { August 5 2003 } Us mulled over sanctions Us threatened sanctions on israel { May 28 2003 } Us warns israel of loan cuts { October 28 2003 } Washington anger at israel grows as outposts stay { December 12 2003 } Files Listed: 21

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