Government and Commission Responses Session 2006-07 - European Union


26TH REPORT: THE EU AND THE MIDDLE EAST PEACE PROCESS

Letter from Kim Howells MP, Minister of State, Foreign and Commonwealth Office to the Chairman

  I thought I should write to you following the publication of your Committee's Report on "The EU and The Middle East Process" on 24 July, which followed my evidence session in April.

  The Government welcomes the quality of analysis and depth of expertise, reflected in your report. Your Report contained a number of Conclusions and Recommendations. I attach a note covering these points. I look forward to continuing contacts with the Committee.

October 2007

GOVERNMENT RESPONSE

Conclusions and Recommendations

  166.  The credibility of the Middle East Peace Process needs to be restored by a renewed, concerted and sustained effort by the whole international community. We believe therefore that the EU, which has many interests at stake in this region, should participate actively and forcefully in such an effort. (Para 5)

    The Government agrees with the Committee that the international community should make a concerted and sustained effort to make progress towards resolving the conflict. The EU has a keyrole to play in this. We are pleased that Prime Minister Olmert and President Abbas have been meeting fortnightly and that both sides have now established negotiating teams to look at core issues in the build up to the US-hosted international meeting in November. This is an important opportunity, not only for the Israelis and the Palestinians, but also for regional and international partners. But we expect a substantive meeting with concrete results. On 8 October the Prime Minister said: "we would like to see an agreement that puts the Israelis and Palestinians on a path to real negotiations in 2008 leading to a final settlement of two states living side by side in peace and security."

    Our objective is to return to a formal negotiation process as soon as possible. A negotiated two state solution is manifestly the best way forward and it is in all of our interests to make rapid progress towards it. The engagement of regional partners will be crucial. The Arab Peace Initiative will be an important part of the way ahead.

    The bedrock of our approach remains: first, to be unstinting in our support for the principle of a two-state solution; second, to give every support to those who are committed to peaceful progress in the region; and third to support economic and social development across the Occupied Palestinian Territories. The peace process needs a multi-faceted approach, with economic, security and social development tracks supporting the political process.

    The EU has a crucial role to play. In its own right and as a leading member of the Quartet, the EU is already heavily engaged in trying to secure a just and lasting peace in the region. The EU also plays a key role economically, as the largest international donor to the Palestinians and as a trading partner with both Israel and the Palestinians. We have two ESDP missions: one in country to lend support at the border at Rafah, another takes the lead in supporting reform of the Palestinian Civil Police.

    The EU is now developing additional roles, including building Palestinian institutional capacity. The Quartet announced on 27 June the appointment of Tony Blair as Quartet Representative with a mandate that includes: mobilising international assistance to the Palestinians; identifying and securing support for the institutional governance needs of the Palestinian state; and developing plans to promote Palestinian economic development.

    The Temporary International Mechanism, originally set up by the European Commission to ensure emergency funding reached those who needed it following the boycott of the Palestinian government, has now been extended by the Quartet until 31 December 2007. The international community, with Commission and UK support, is working to establishing a co-ordinated multi-donor successor. The Commission is also working on a mechanism to help reduce Palestinian Authority private sector arrears.

  167.  The EU's consistent support since 1980 for a negotiated two-state solution as the basis for a final and comprehensive settlement of the Israeli-Palestinian conflict has subsequently gained the adherence of the majority of the international community and, above all, since 2002, of the US. This is one of the major successes of EU diplomacy in the MEPP,particularly in influencing the evolution of US policy. The seriousness of the current situation is a major test for the EU, which again needs to put its full weight behind the search for a comprehensive solution. For 20 years extremists have been allowed to dictate the agenda. Any resumed peace process now needs to be proofed against their acts. (Para 11)

    We agree with the Committee that the EU has played, and continues to play, a significant role. The EU values its close relationship with the US on the MEPP. Together we are continuing to work towards the establishment of two states, Israel and Palestine, living side by side in peace and security. We are working to create the conditions for formal negotiations to start between the parties, and to ensure that confidence-building steps are taken to underpin such negotiations.

  168.  We are not convinced that the Road Map, as originally conceived in 2003, is the only vehicle for progress, and consider that the interim steps it describes should no longer be pursued to the exclusion of the consideration of final status issues such as the territorial limits of the two states, the fate of refugees and the status of Jerusalem. We are reinforced in this view by the recent statement by High Representative Javier Solana that the time has come for the EU and the Quartet to focus more directly on resolving the issues, which are at the heart of the conflict. (Para 20)

    Clearly the precise timescale envisaged in the Roadmap no longer applies. But we continue to believe that the Roadmap principles, and its vision of the need for interlocking confidence building measures in key areas by both parties, remain relevant. The Roadmap has been endorsed by both the parties and the international community, giving it continued validity.

    We agree that an independent, democratic and viable Palestinian state peacefully co-existing with a secure Israel, and an end to the occupation that began in 1967, must remain the basis for a solution to this conflict. Our entire policy on the Middle East Peace Process is based on this principle. Achieving this remains one of our key foreign policy priorities. We are determined to work actively with the parties and our international partners to this end.

  169.  We believe that the EU needs to explore more imaginative ways of re-engaging the Israelis in the search for peace. EU policy contains a clearly stated position calling on the Israeli government to take "further steps, including the freezing of settlement activities and dismantling of settlement outposts and Israeli abstention from measures which are not in accordance with international law, induding extra-judicial killings and collective punishment." (Para 26)

    The EU remains fully engaged with Israel in the search for peace and regularly lobbies on issues like settlements and the barrier. The EU understands Israel's security concerns and condemns the violence by Palestinian militant groups, which seeks to undermine the prospects for peace. We believe the current EU policies towards Israel are the right ones and welcome the work of the EU High Commissioner, Javier Solana, and the EU Special Representative, Marc Otte, in taking these policies forward with the Israelis.

  170.  We believe the EU needs to use all the instruments at its disposal. The European Neighbourhood Policy, in particular, offers a promising route through which the EU can work for a deepening bilateral relationship with Israel within the context of steps towards resolving Israel's conflict with the Palestinians. The EU needs to make clear to the Israeli government that there could be opportunities for developing the relationship within the Neighbourhood Action Plan. Conversely, a lack of engagement by Israel in the MEPP would in the long run hinder the process of economic harmonisation and bilateral technical and security co-operation. (Para 33)

    Israel was the first country to agree with the EU an Action Plan under the European Neighbourhood Policy (ENP). Through the ENP, the EU invites its neighbours, on the basis of a mutual commitment to common values, to move beyond existing relationships to offer a deeper political relationship and economic integration.

    The ENP Action Plan, with the EU/Israel Association Agreement, is a key tool for the EU not only to enhance co-operation with Israel, but also to raise issues of concern. The Action Plan contains a number of commitments in relation to the MEPP.

    The EU/Israel Reflection Group, at which EU Member States are represented by the Presidency, offers a forum for Israel to put forward proposals for deepening its relations with the EU. While the EU Presidency is not currently mandated to enter into negotiations at this forum, there may be opportunities for developing the relationship within the Neighbourhood Action Plan.

  171.  We are gravely concerned about the security, human rights and socio-economic situation in the occupied Palestinian territories. It is becoming evident that the Quartet approach contributed nothing to ameliorate the crisis. (Para 40)

    We share the Committee's concern about the situation in the OPTs. The international community has always made clear its desire for peace and its willingness to work with all those that share that goal. The socio-economic decline in the Occupied Palestinian Territories has been caused by a number of factors including: increased restrictions on movement and access; Israel's decision to withhold Palestinian clearance revenues (though these have recently been restored); reduced flows of migrant labour into Israel; and the Palestinian Authority's fiscal policies.

    Last year, the European Union gave over €680 million to the Palestinians, more than in any previous year. Without this assistance it is clear that the situation would have been far worse. Whereas the World Bank forecast a 27% economic decline at the start of 2006, this was reduced to only 10% due in large part to increased aid levels. During 2007, the EU has stepped up its assistance even further, and is scheduled to deliver over €800 million.

  172.  The EU should engage more urgently and consistently with the Israeli government to persuade them to transfer the remainder of the withheld Palestinian tax and customs revenues to the Palestinian authorities in a way that benefits all Palestinians 33. (Para 41)

    We welcome the resumption of Palestinian tax and customs revenues transfers, which are now taking place regularly alongside additional payments of withheld arrears. We expect Israel to transfer the arrears in full.

  173.  We believe that the European Union's support for a Palestinian coalition government, induding Hamas, could not have been unconditional. To require that a Hamas-led government not only renounce attacks on Israel but also use its governmental authority to prevent such attacks by others was entirely justified. (Para 45)

    We appreciate the Committee's support.

  174.  However, the EU should not allow the peace process to be held hostage by any faction, individual, or state. The history of the Middle East is scarred by peace initiatives that have been derailed by extremists on both sides. Although each situation is different, recent experience in other situations, such as Northern Ireland, can serve as a source of inspiration and valuable lessons on how to bring into the peace process individuals and movements who previously espoused violence and how to avoid the process succumbing to acts of violence.(Para 46)

    We agree with the Committee. The international community has always made clear its desire for peace and its willingness to work with all those that share that goal. On 17 September, we published a report on the "Economic Aspects of Peace in the Middle East" which draws inspiration from the Northern Ireland peace process and the role of the business community there in promoting peace, condemning violence and enfranchising the population through economics.

  175.  We believe that the EU's objective should be to attempt to maintain a peace process that is as inclusive as possible, while firmly rejecting attempts by outsiders and extremists to derail it. Dialogue with the key parties is an essential aspect of the peace process, and channels of communication should as far as possible be kept open. (Para 47)

    We agree with the Committee that the peace process should be as inclusive as possible, and that we should firmly reject attempts by outsiders and extremists to derail it. We have made clear that we are willing to work with all those whose words and actions reflect the Quartet principles (non-violence; recognition of Israel; and acceptance of previous agreements and obligations, including the Roadmap). These principles are an essential basis for progress.

  176.  The requirement that the Palestinian government accept and respect positions established collectively by the Arab side, most recently at the Arab League Summit in Riyadh, is entirely justified. But conditions about the formal recognition by Hamas of the state of Israel amalgamate elements of any final status negotiations with the preliminaries to such negotiations. We believe that the interpretation of the conditions set by the Quartet was undesirably rigid and we would urge the government and the EU to reconsider the precise formulation of any conditions and to apply them in future with a reasonable amount of flexibility. (Para 51)

    We do not agree that the Government's interpretation of the three Quartet principles was undesirably rigid. Rejecting those principles means rejecting peaceful negotiations and the two-state solution. The Quartet principles are no more than what was demanded of the PLO in the 1990s as the essential basis for progress.

    We were very clear that we would engage with those members of the National Unity Government whose words and actions reflected the Quartet principles. The issue was not whether they were Fatah or Hamas, but whether they lived up to the responsibilities of Government. In the case of Hamas Ministers, given their history, we needed some time to make that assessment.

  177.  We are concerned that military support for one faction over another heightened tensions in the occupied Palestinian territories. (Para 55)

    We share the Committee's concerns and therefore only support the legitimate security forces of the Palestinian Authority.

  178.  We also believe that the EU should engage in a frank dialogue with the United States on this issue, with a view to ensuring that all aid provided by members of the Quartet improves the cohesion of the Palestinian administration and avoids increasing tensions. (Para 56)

    The EU engages closely with the US, both in capitals and on the ground. We already work to ensure our aid is complementary. An example of this is on Security Sector Reform. The US has taken the lead in reforming the Palestinian Authority Security Forces under the leadership of General Dayton and the EU has taken the lead in reforming the Palestinian Civil Police. Both programmes are designed to improve security on the ground in the Occupied Palestinian Territories. The UK has provided a police adviser to General Dayton's team to ensure coherence between the EU and US's security sector work.

  179.  We also believe that it is a necessary condition for any peace settlement between Israel and its Arab neighbours that there should be a Palestinian Authority capable of fulfilling any responsibilities it has accepted under such a settlement. It should also be able to provide stability and good governance within the Palestinian party to a two-state solution. Accordingly, the European Union needs to keep that ultimate objective firmly in mind at every stage of its dealings with the Palestinians and Israelis and the wider international community; and to concentrate its efforts on moving towards that objective. The provision of emergency humanitarian aid by the EU must not conceal the need to move as soon as possible to a situation where the EU's resources go directly to properly constituted Palestinian governmental institutions. (Para 57)

    The Government agrees with the Committee that the international community should move towards direct financial assistance as soon as possible. We are working with partners in the EU and elsewhere to develop the conditions that will make this possible. DFID officials are working with the Commission and the Palestinian Ministry of Finance to develop a mechanism by which donors can contribute directly into the Single Treasury Account to assist in paying off the PA's private sector arrears. DFID has earmarked £3 million to be used for this and is encouraging others, including the Commission, to contribute. Over the medium term, DFID is working with partners in both the Commission and the World Bank to develop mechanisms for direct budget support to the PA linked to dialogue on urgently needed reforms. DFID is also providing technical experts to assist the Ministry of Finance prepare a medium term development plan and budget, which will be an essential pillar of future budget support.

    The UK strongly supports Tony Blair's appointment as the Quartet Representative and has seconded four officials to his team. Tony Blair's mandate includes building the capacity of the Palestinian Authority and promoting Palestinian economic development.

  180.  The present situation on the ground is far removed from the stated objective of creating a viable Palestinian state. But the "Mecca agreement" between Hamas and Fatah, brokered by the Saudi government offered, the possibility of a first step along that road. The European Union needs, by its statements and its actions, to encourage further progress along these lines. (Para 58)

    The Government agrees with the Committee that the Mecca Agreement offered the possibility for progress. The EU encouraged further progress through its statements and actions, including through its General Affairs and External Relations Council conclusions which stated: "The EU recalls its readiness to work with and to resume its direct assistance to a Palestinian government whose policy and actions reflect the Quartet principles. In that context, it continues to closely evaluate the policy and actions of the new National Unity Government. It has initiated co-operation with members of the government who accept these principles".

  181.  We believe that a key role for the EU in the EU/US relationship is to press upon the US the importance to the future of the region of its sustaining an active, balanced and consistent interest and engagement in the MEPP, and supporting the Palestinians as well as Israel in achieving the two state solution. In pursuit of this objective, the EU and Member State governments should give their full support to their parliamentarians, in making full use of the existing relationship and in increasing links to explain and discuss the European position with their counterparts in the US Congress. (Para 63)

    The Government believes that the US is already engaged, supporting the Palestinians as well as the Israelis in achieving the two-state solution. Secretary Rice regularly visits the region and the US, as announced by President Bush in his 16 July speech, will host an international meeting later this year. The US also supports Security Sector Reform through US General Dayton's team and committed over $70 million to the Palestinians in 2006. The Government welcomes the input of parliamentarians.

  182.  We acknowledge the importance of the diplomatic energy and commitment to reviving the MEPP demonstrated in recent months by Saudi Arabia and other Arab League states, and the facilitating role played by Saudi Arabia in the formation of the Palestinian National Unity Government as having been one of the most helpful developments in recent months. While it is premature, and perhaps unwise, to focus too closely on the machinery and form that the new, and unprecedented, engagement of the Arab states in the MEPP will take, the EU and other members of the Quartet should take seriously and encourage the renewal of Arab regional leadership. Recent initiatives, such as the designation by the Arab League of Egypt and Jordan as the League's interlocutors with Israel and the Palestinians in the MEPP, should be fully supported by the EU. (Para 70)

    The Government agrees with the Committee's conclusion that the League of Arab State's Arab Peace Initiative (API) is a positive proposal. We welcomed the API as an important contribution to the MEPP when it was first announced in 2002, and reaffirmed that after the 2007 Arab League Summit in Riyadh. We particularly welcome the role of King Abdullah of Saudi Arabia in advancing this initiative, and the positive role of other regional states, including Jordan, Egypt and the United Arab Emirates.

    The API offers the potential of normalised relations between Israel and the Arab world on the establishment of a Palestinian state on the 1967 borders. The EU has a key role in engaging the Arab League and encouraging them to discuss their proposal with Israel. The EU welcomed the meeting on 4 May between the Quartet and members of the Arab League Follow-Up Committee. We also welcome the meeting between Israeli Foreign Minister Tzipi Livni, Egyptian Foreign Minister Aboul Gheit, and Jordanian Foreign Minister Abdelelah Al-Khatib in Sharm el-Sheikh on 10 May, and the historic follow up visit to Israel by the Egyptian and Jordanian Foreign Ministers on 25 July. The Quartet met the Arab League on 23 September in New York.

  183.  We recognise the importance of the EU continuing its engagement with Syria, not least to test President Assad's seriousness of purpose. Syria has clear and legitimate national and strategic interests at stake in the MEPP. Both the Israelis and Palestinians have an interest in ensuring that Syria does not undermine the prospects for peace, either by supplying weapons to support Hezbollah attacks from Lebanon into Israel, or by providing a safehaven and financial support for a Hamas leadership in exile. (Para 76)

    The Government agrees with the Committee's conclusions that the EU should continue to seek to engage with Syria with a view to encouraging them to play a more constructive role in the region and testing their willingness to do so. Both EU Member States and the EU High Representative, Javier Solana, have taken steps to work with Syria to address a number of regional concerns. Javier Solana's March 2007 visit to Damascus clarified what would need to happen for Syria to progress its relations with the EU. We will continue to support his work. However, Syria's policies in a number of areas, including Iraq, Lebanon and the Middle East Peace Process remain a cause for concern. The Government's view is that a more constructive Syrian policy in the region is a pre-requisite for progressing its relations with the EU.

    The Government agrees with the Committee that Syria has a legitimate national interest in the MEPP. The Roadmap sets out steps to a comprehensive settlement, including the Palestinian, Syrian and Lebanese tracks. We continue to be concerned by Syria's support for Palestinian rejectionist groups, including Hamas, Palestinian Islamic Jihad and others. Such support only reduces the prospects for peace in the Middle East.

    In Lebanon, we judge that Syria continues to play an unhelpful role. Syria continues to support Hizbollah, including by allowing arms to be smuggled across the border destined for Hezbollah, in violation of UNSCR 1701. We continue to call on Syria to cease any destabilising activity and develop a mature and constructive relationship with Lebanon. Full implementation of UNSCR 1559 remains the Government's objective in this context.

  184.  We believe negotiations for a comprehensive settlement of the Arab-Israeli dispute must involve Lebanon, whose political stability and viability is a necessary element for progress towards such a settlement. We urge the EU to continue to give fun support to the government of Lebanon, including by continuing to support the establishment of an international tribunal to try those suspected of involvement in the assassination of former Prime Minister Rafik Hariri and other Lebanese public figures. (Para 83)

    The Government agrees that a comprehensive settlement of the Arab-Israeli dispute must involve Lebanon and that promoting stability in Lebanon is vital for achieving this, including by supporting the Special Tribunal for Lebanon. The Government worked closely with international partners at the UN Security Council to ensure that the Special Tribunal for Lebanon was established; indeed, the Government played a key role in the process by co-sponsoring UNSCR 1757, which established the Tribunal. Securing a just and swift outcome to the ongoing UN investigation and to the future work of the Special Tribunal will remain a high priority for the Government. In its Conclusions of 18 June, the General Affairs and External Relations Council welcomed the adoption of UNSC Resolution 1757 and called on all states and all parties to fully cooperate with it.

  185.  The stability of Lebanon requires the continuing absence of hostilities along the country's border with Israel. We urge the EU therefore to give full support to UNIFIL II in its strengthened form and mandate, including the prevention of attacks on Israel from southern Lebanon, and to make clear to Israel that any military action from their side will be met by the condemnation of the international community. Given that the only remaining territorial dispute in the area concerns the Shebaa Farms, and in order to neutralise it as a source of conflict, we suggest that the EU seeks to convince Syria and Lebanon to refer the issue to the International Court of Justice, and to convince Israel to declare that it will respect any judgement by the Court and evacuate the area in dispute forthwith. (Para 84)

    The Government agrees that maintaining peace along the Blue Line separating Israel and Lebanon is critical to the stability of Lebanon. The strengthened UNIFIL peacekeeping force has played a vital role in maintaining stability since the end of the conflict between Israel and Hezbollah last year. EU Member States continue to make a major contribution to UNIFIL and EU troops form the bulk of the peacekeeping force there. The fact that there have been very few serious breaches of the Blue Line since August 2006 attests to the value of UNIFIL and the role they have played.

    The Government remains committed to the full implementation of UN Security Council Resolution (UNSCR) 1701, including on the Shebaa Farms. The UN has made important progress on this issue and the next report by the UN Secretary General on progress towards implementing UNSCR 1701 will include the results of the UN's cartographic work to form an accurate territorial definition of the Shebaa Farms area. This will be an important step towards initiating discussions with the relevant parties to resolve the issue of sovereignty. The Government maintains that the Security Council is the best forum in which to forward work on resolving this dispute, rather than other bodies such as the International Court of Justice.

  186.  We believe that it is important that the EU continues to engage with Iran diplomatically, but it should not allow the content of these negotiations to "leak into" or create a direct linkage to the MEPP. Iran should not be allowed to have a veto over,the MEPP. (Para 91)

    We agree with the Committee's conclusions about Iran's role in the MEPP. We have long-standing concerns about Iranian support for groups seeking to undermine the MEPP through violence. We have called on Iran to renounce all links to groups using terror and violence, and support a solution to the Palestinian question based on the principle of two states living side-by-side in peace and security.

    The Foreign Secretary has made clear that Iran has every right to be a proud and respected member of the international community. It has the potential to play a constructive role in the Middle East. We would welcome dialogue and engagement with Iran in this vein. But Iran must also accept that it has responsibilities to the region and the wider international community.

  187.  We believe that leading EU Member States have an important role to play in any renewed peace effort and that this needs to be coordinated within and designed to support an overall EU position. The Government should direct the UK's involvement with these objectives in mind. (Para 99)

    The Government agrees with the Committee.

  188.  The EU has a very wide range of instruments at its disposal, in addition to those available to the Member States, and plays an important role in co-ordinating aid to the Palestinian territories. We believe that the EU Member States should carefully consider the value of engaging in competing or paraller initiatives and demarches, and that they should closely co-ordinate their efforts in the framework of a coherent EU policy. (Para 100)

    The Government agrees with the Committee.

  189.  We see the Quartet of the US, the EU, Russia and UN as continuing to be the essential diplomatic tool for co-ordinating the involvement of the wider international community in any such peace effort. The EU has already played an influential, but largely unacknowledged, role within the Quartet, introducing innovative proposals for the way forward. We believe that the EU's role within the Quartet needs to be more active and assertive than it has been in the past, providing leadership with imaginative ideas, including on final status issues and through engaging in a frank and intensive dialogue with other partners, in particular the US. This should however be done in private and with the aim of building consensus as the best means to preserve the Quartet's influence with both the parties to the conflict, with whom the EU and the Quartet should seek to pursue an even-handed approach. It is essential to ensure that fewer opportunities exist than in the past for the parties to the conflict to exploit divisions between international actors within the Quartet, and most especially those between the EU and US. We urge the Government to seek to ensure that the EU's representatives in the Quartet, notably the High Representative, get the backing they need to play a more active and assertive role. (Para 110)

    The Government welcomes the Committee's comments and agrees that the Quartet has an important role to play. We strongly support Tony Blair's appointment as the Quartet Representative and have seconded four officials to his team. Tony Blair is committed to advancing the peace process, and brings unparalleled international and diplomatic experience to the role. His appointment has been strongly welcomed by the parties and by the international community.

    We agree with the Committee that the international community needs to remain united and that the Quartet has helped ensure this. We strongly support the EU High Representative's work and the work of the EU Special Representative for the Middle East Peace Process.

  190.  We welcome the greater role attributed to the High Representative's office in providing a focus for collective EU efforts, but consider that a more structured approach is required to co-ordinate and synchronise the diplomatic efforts of the High Representative with the economic and other instruments deployed by the Commission. The pro-active role of Dr Solana has gone a long way towards improving the situation. (Para 116)

    We fully share the Committee's assessment of the need for a structured approach to co-ordinate and synchronise the diplomatic efforts of the High Representative with the practical assistance and delivery work led by the Commission. We are grateful to the High Representative's office for helping to provide a focus for collective EU work and to the Commission for its efforts to enhance cooperation and co-ordination within the EU.

  191.  We consider that the High Representative, Javier Solana, assisted by the EU Special Representative, Marc Otte, has worked very actively and effectively towards achieving the objectives of the EU in relation to the MEPP. The question now arises as to whether the EU has the capacity in place to participate in intensive negotiations on a comprehensive peace settlement. We would encourage the Council to make the necessary preparations so that the EU can quickly mobilise a full negotiating team to assist the peace process. (Para 117)

    We welcome the committee's support for Javier Solana and Marc Qtte. The Government strongly welcomes their engagement, including the High Representative's role in Quartet discussions. We believe that negotiations leading to a comprehensive peace settlement need to be conducted between the two parties. However, we will provide any support we can to help facilitate a successful outcome.

  192.  We believe that the EU's extensive budgetary assistance and humanitarian aid has been vital to the establishment and maintenance of Palestinian institutions and to sustaining the Palestinian people and this should be publicised both in the region and outside. The EU should continue to make every effort to monitor the distribution of its aid in difficult circumstances. (Para 128)

    We agree with the Committee's conclusion that EU funding has been vital to the establishment and maintenance of Palestinian institutions and in sustaining the Palestinian people. In particular, the Temporary International Mechanism, to which EU members (and Norway) had committed €513 million by the end of September, has provided allowances to 150,000 public sector workers and paid for more than 76 million litres of fuel for electricity production to run hospitals, waterpumps and sanitation facilities. EU assistance, despite being at record levels, has not enjoyed a high profile. The secondment of a communications expert to the TIM team has helped redress this.

  193.  The EU should link its financial and technical assistance more directly to its political goals and make that assistance conditional on progress in institutional reform in the Palestinian territories and in the peace process. The EU role is important to strengthening the Palestinians' capacity both to assume their responsibility for achieving peace and to enhance governance standards and accountability in the everyday lives of Palestinian citizens which is critical to public support for the objectives of peace. (Para 129)

    We are working with the World Bank, EU and other partners to create a mechanism for direct assistance to the Palestinian Authority that will be based on conditionality around institutional and governance reforms. It will also include appropriate fiduciary controls. The UK government does not tie its aid to political objectives as this runs against aid effectiveness principles.

  194.  We firmly support the Temporary International Mechanism (TIM) but believe that it has been no more than a stop-gap measure, whose usefulness must not conceal or delay the need to move as soon as possible to a situation where the European Union's resources go to properly constituted Palestinian governmental institutions. The TIM cannot be a substitute for more normal economic conditions, in particular free movement and access, and the full transfer of withheld Palestinian revenues by the Israeli government. (Para 134)

    The Government welcomes the Committee's support for the TIM. We agree though that TIM should only be a temporary measure. The priority now should be to provide direct support to the Palestinian Government headed by Prime Minister Salam Fayyad. On 17 July, DFID announced a £3 million contribution to the Palestinian Authority to help pay private sector arrears. We are working closely with the World Bank, EC and other donors to create a mechanism for budget support, to which donors can contribute.

    We agree that donor assistance, including the TIM, cannot and should not be considered a substitute for revenues derived from increased economic activity, or from clearance revenues owed by Israel to the PA. We continue to call on Israel to remove restrictions on movement and access in line with their commitments in the 2005 Agreement on Movement and Access. We welcome the resumption of payment of clearance revenues arrears by Israel.

    The humanitarian situation in the Occupied Palestinian Territories and particularly in Gaza remains a concern. We have made clear our desire to continue supporting all the Palestinian people and DFID announced on 19 June a £1 million contribution to the work of the ICRC in Gaza and the West Bank.

  195.  The TIM should accordingly not divert the attention of the EU from the root causes of the insecurity and poverty in the Palestinian territories. The Commission is to be commended on the way in which it quickly set up the Temporary International Mechanism in response to the boycott of the Palestinian government and on its leading role in co-ordinating humanitarian aid, including from the Member States. We would encourage the Commission to continue to work towards the effective co-ordination of humanitarian aid with other donors, including Arab states and the United States. (Para 135)

    We agree that the Commission's rapid establishment of the TIM and its leading in role in co-ordinating humanitarian aid should be applauded. We continue to promote the effective co-ordination of aid and are working with the World Bank and the Commission to establish a reform-based trust fund, to which other donors can contribute.

  196.  We support the European Commission's plans to establish a successor mechanism to the TIM, even though the events of June 2007 re-opened the question of how EU funding mechanisms would evolve. In the meantime it will be important that aid should be available to Palestinians in all the occupied territories. Strict guarantees should be provided that funds will not be diverted to purposes other than those for which they are intended and, over the longer term, particular attention should be paid to reducing the aid dependency of Palestinians. (Para 141)

    The Quartet has extended the TIM until 31 December 2007, while the international community works to establish a coordinated, multi-donor successor. The UK is working with other donors to ensure that any new mechanism will provide aid to Palestinians in all the OPTs, and that it will not be diverted to purposes other than those for which they are intended. Work with EC officials on a mechanism for helping reduce the PA's arrears to the private sector will ensure a strict set of fiduciary safeguards are in place with oversight provided by an international audit firm. The UK remains committed to reducing aid dependency. The Government's recent report on "Economic Aspects of Peace in the Middle East" makes clear that only the Palestinian private sector can drive forward sustainable economic growth in the OPTs and therefore reduce the Palestinian economy's dependency on aid.

  197.  We believe that work to set up EUPOL COPPS should resume when conditions allow, but it should be re-oriented and strengthened. The EU must address the weaknesses of EUPOL COPPS. In particular, the mission must focus on capacity-building and reform rather than equipment, and should strengthen rather than weaken the rule-of-law. Co-ordination with other operational actors and donors also appears to be an area of concern. (Para 153)

    EUPOL COPPS has resumed full operations now that Hamas are no longer in government. The mission is committed to both transformational and operational development of the Palestinian Civil Police. In the initial stages of re-engagement, they found that practical assistance was also beneficial, in the form of equipping and training police officers, and also assessing the performance of individual police stations. Certain projects, such as the refurbishment of the Jericho Training Centre also contribute to longer-term capacity building. EUPOL COPPS personnel include non-police experts to allow co-ordination with other parts of the criminal justice sector, contributing to sustainable reform. The mission is also engaging with other international actors, notably General Dayton, the Blair mission, and the UK police expert implanted within the office of the US Security Co-ordinator. EUPOL COPPS will increase its presence by the end of October to allow eight field officers to work alongside and mentor police leaders at a governorate level and substantially enhance its Rule of Law programme.

  198.  We believe that discussions with the parties to the conflict and the members of the Quartet should commence with a view to identifying whether the EU may be in a position to support a peace settlement through the deployment of a peacekeeping mission. In the light of these discussions, the Council of the EU could consider undertaking scenario development and planning work for a possible EU operational mission to the Palestinian territories. (Para 155)

    We welcome any proposal that will ensure peace and security, but the deployment of a peacekeeping mission would be difficult and require the consent of all the parties on the ground. Our immediate priority is the ending of hostilities and the provision of international aid to the Palestinian people. But the EU will need to be open to the possibility of playing a role on the ground as part of a final settlement

  199.  We believe that while the Euro-Med Partnership has been useful in the past, it is now the European Neighbourhood Policy (ENP) that can make a contribution to developing relations with the parties to the MEPP. The advantage of the ENP is that it allows the EU to develop bilateral relations, which are suited to each individual partner country. Progress made by each country is not dependent on progress made by other countries. Under the ENP, the EU offers various financial and other incentives to support the implementation of each country's Action Plan. (Para 161)

    The UK strongly supports the European Neighbourhood Policy, which is now the main framework for the EU's relations with MEPP parties. ENP presents a single, coherent policy towards all EU neighbours whilst allowing differentiation through individual Action Plans tailored to the needs of each partner country. It goes beyond existing relationships to offer a deeper political relationship and economic integration, with the level of ambition depending on the extent to which each partner demonstrates its commitment to common values such as democracy and human rights, rule of law, good governance, market economy principles and sustainable development. An ENP Governance Facility has been established to support neighbours in their reforms and a substantial Neighbourhood Investment Facility will be set up shortly.

  200.  There is a danger that the situation will deteriorate rapidly and that the crisis will spread beyond the Palestinian territories. In addition, events such as those of June 2007 may be used, as they have often been used in the past, as an excuse for inaction and neglect. We do not believe the international community can afford yet again to repeat these errors and should recognise an even greater urgency in seeking a solution. (Para 164)

    We share the Committee's concern at the situation in the OPTs, including the events of June 2007. We have not and will not use this as an excuse for inaction or neglect. On the contrary, we are working with our partners in the Quartet to help ensure that the US-hosted international meeting moves the peace process forward.

  201.  These recent events, in our view, reinforce the overall conclusion of our report, that the EU now needs to play a more active and imaginative role in the search for peace in the Middle East than it has done in recent years; they underline the importance of the main policy recommendations we have made. Indeed our view is strengthened that the EU needs to increase and sustain its effort to work more closely with all the main players towards an inclusive peace process and settlement. (Para 165)

    The Government welcomes the Committee's conclusions. We agree that the EU needs to increase its efforts and the UK is ready to play its part. We want to see the EU playing an active role in all areas of the MEPP—political, security and development. In 2006, the EU gave over €680 million to the Palestinians. This has increased in 2007 to €800 million. The EU Border Assistance Mission (EUBAM) is ready to resume their border-monitoring role at Rafah as soon as the situation allows and the EU is resuming and expanding the EUPOL COPPS mission. We continue to explore with our partners, and, more importantly, the regional players on the ground, ways in which we can push forward the peace process.

October 2007


 
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