British PM pledges Palestinian aid

BETHLEHEM: British Prime Minister Gordon Brown pledged further economic aid to the Palestinians on a visit to the region on Sunday aimed at bolstering US-backed Middle East peace talks.

“We have pledged 500 million dollars for economic development in Palestine over three years to 2011,” Brown said after meeting Palestinian president Mahmud Abbas in the Israeli-occupied West Bank town of Bethlehem.

“I can announce today a further commitment of 60 million dollars, 30 million of which we will give as direct budgetary support, bringing our total support to the Palestinian Authority this year to 175 million dollars,” he said.

In keeping with his “economic roadmap” to peace, Brown pledged support for a new mortgage finance authority which he said would help to finance some 30,000 new Palestinian homes and generate up to 50,000 new jobs.

Brown – who spent 10 years as finance minister under Tony Blair, whom he succeeded as premier in June 2007—also said that a recent international investment conference in Bethlehem had been a success and that he and Abbas had agreed that London would host a similar follow-up event later this year.

“Palestine is open for business,” Brown said.

Earlier Brown visited Israeli President Shimon Peres in Jerusalem and was to return to the city later on Sunday for talks with Prime Minister Ehud Olmert.

He has also been invited to address the Israeli parliament on Monday – the first time a British premier will make a speech to the Knesset.