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* US will offer Palestinians 500 million dollars: source

AFP, December 15, 2007

WASHINGTON, Dec 14, 2007 (AFP) - The United States will offer the moderate Palestinian leadership more than 500 million dollars at an international donors conference opening in Paris at the weekend, a US official said Friday.

"The US will make a generous contribution. The expectation would be 100 million dollars more than last year's context, in the vicinity of 500 million plus," a government official said on condition of anonymity.

The administration of US President George W. Bush had asked Congress to approve 400 million in economic support for Palestinians in the 2007-2008 budget, which began on October 1. The amount has not been approved.

Secretary of State Condoleezza Rice will head the US delegation to the conference aimed at supporting Palestinian reform of political, security and economic institutions that would underpin a future Palestinian state.

The conference, organized by the French government, follows the launch on November 27 in Annapolis, Maryland of the first serious Palestinian-Israeli peace negotiations in seven years.

The United States wants to shore up Palestinian president Mahmud Abbas, whose secular Fatah faction was driven out of the Gaza Strip by the radical Islamist Hamas movement during heavy fighting in June.

Listed in Washington as a terrorist group, Hamas stunned many when it won elections in the West Bank and Gaza Strip in 2006.

Prior to the election win, US aid to the Palestinians amounted to about 250 million dollars per year.

Since then, the United States has spent money bit by bit on the Palestinians, particularly through the release of 40 million dollars in emergency aid to Gaza residents last June.

The conference opens Sunday and lasts through Monday.

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