Peres: Gaza hardship must be alleviated

Israel has a vested interest in improving Gaza's economic situation, because a Palestinian economy based on bitterness and hunger will bring about continued security threats to Israel, Vice Premier Shimon Peres said Tuesday during a meeting to discuss economic and civilian issues following the pullout.

However, Internal Security Minister Gideon Ezra (Likud) voiced a different opinion.

"Until there is an agreement with the Palestinians, I we must increase border-crossing inspections," he said. "This is a necessary condition to ensure the pullout doesn't backfire on us. I am hopeful the Palestinians will believe our intentions are good and will not use it to our disadvantage."

Other issues discussed at the meeting included Israeli policy regarding border crossings, the Gaza port, economic development in Gaza and movement between Gaza and the West Bank.

Justice Minister Tzipi Livni, Interior Minister Ophir Pines-Paz, Minister Haim Ramon, Coordinator of Government Activities in the Territories Yosef Mishlav, National Security Advisor Giora Eiland and the director-generals of the government offices also participated in the discussion.

Peres: Rafah crossing 'sensitive'

Peres also said government offices must maintain coordination, and added that no one should be permitted to determine independent policies.

"We have no intention of turning Gaza into a prison. We must allow them to have an organized economy; they are entitled to move freely inside the (Gaza) Strip and Judea and Samaria, in accordance with security arrangements, of course" he said.

Peres emphasized that Israel's intention is to alleviate poverty in Gaza without making compromises to security.

"The subject of the Rafah crossing is a central and sensitive issue that will be decided in the next few days by the prime minister, defense minister and myself," he said.

"Many problems have surfaced in Gaza since our withdrawal, such as communication, electricity mains, water, sewage and nearly every aspect of life. We must meet once a week to coordinate and determine consistent policies."

USD 3 billion to PA

According to Peres, western countries sent the PA more than USD 10 billion since the Oslo Accords were signed in 1993.

However, he said, a change will now be made regarding the issue of donations.

Funds will not longer be transferred to funding committees, but will rather be given through the G-8. The group of leading industrialized countries is expected to transfer about USD 3 billion over the next three years to the Palestinians.

"The money is still there, but in order for it to reach the Palestinians they have to present an economic plan," he said. "They cannot do it without Israel's cooperation."

Meanwhile, Minister Haim Ramon said during the meeting that Israel must open channels of dialogue with the Palestinians, especially regarding civilian issues.