Obama Promises $400 Million for Palestinians

The Los Angeles Times reports that President Obama has promised Mahmoud Abbas $400 million for development in the Palestinian territories.

President Obama pledged an infusion of $400 million in aid for housing, school construction and business development in the Palestinian territories Wednesday, saying after a one-on-one meeting with Palestinian leader Mahmoud Abbas that the situation in Gaza is "inherently unstable."

Obama had planned the White House meeting to talk mainly about the Middle East peace process. But in the aftermath of a deadly May 31 Israeli assault on an aid flotilla bound for the Gaza Strip, the two leaders ended up focusing instead on the blockade of Gaza and its effects on the people who live there.

"We agree that Israelis have the right to prevent arms from entering into Gaza that can be used to launch attacks into Israeli territory," Obama told reporters after his meeting with Abbas in the White House. "But we also think that it is important for us to explore new mechanisms so that we can have goods and services, and economic development, and the ability of people to start their own businesses, and to grow the economy and provide opportunity within Gaza."

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