Israel brushes aside US loan cut over fence, pals hail

By: Ahmad Hammadi

GAZA: Israel on Wednesday disregarded US loan cuts over a huge barrier and settlement expansion on occupied land while Palestinians welcomed the Bush admin decision but said the penalty was insufficient to force Israel to stop building the fence or to end continued settlement building.

Palestinians said the funding cut would not make Israel change its plans. The Palestinian Negotiations Minister Saeb Erekat said: “I'm afraid that this step as a message will not deter Israel from continuing to build the wall and the settlements.”

The United States will deduct $289.5 million from loan guarantees currently available to Israel.

The Israeli Embassy in Washington said Israel accepts that the United States does not view some of the Israeli activities to date in parts of Judea, Samaria and Gaza as being consistent with US policy.

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