Secretary of State Clinton in Sharm el-Sheikh

U.S. Secretary of State Hillary Clinton spoke at the international Gaza reconstruction conference held at Sharm el-Sheikh, Egypt, today, where she announced that the United States would provide $900 million in aid for the Palestinian people, with $300 million of that directed for humanitarian relief in Gaza, and $600 million for the Palestinian Authority.

"I’m proud to be here on behalf of the Obama Administration – and to bring this message from our new President: The United States is committed to a comprehensive peace between Israel and its Arab neighbors and we will pursue it on many fronts," Clinton said. "So too will we vigorously pursue a two-state solution to the Israeli-Palestinian conflict."

"By providing humanitarian assistance to Gaza, we also aim to foster conditions in which a Palestinian state can be fully realized," Clinton continued. "A state that is a responsible partner, is at peace with Israel and its Arab neighbors, and is accountable to its people; a state that Palestinians everywhere can be proud of and is respected worldwide."

Also attending the Palestinian aid conference as part of the U.S. delegation: U.S. special Middle East peace envoy George Mitchell and USAID’s acting administrator Alonzo Fulgham. The NSC’s Mara Rudman and Daniel Shapiro are also said by sources to be on the trip.

From Clinton’s remarks today at Sharm el-Sheikh:

SECRETARY CLINTON: I’m proud to be here on behalf of the Obama Administration – and to bring this message from our new President: The United States is committed to a comprehensive peace between Israel and its Arab neighbors and we will pursue it on many fronts. So too will we vigorously pursue a two-state solution to the Israeli-Palestinian conflict. As a sign of our seriousness, President Obama and I have appointed Special Envoy George Mitchell to lead this effort.

We commend President Abbas for his commitment to move forward with a negotiated solution, and also Prime Minister Fayyad for his work to build institutions to support a Palestinian state. And we take inspiration from the Arab Peace Initiative proposed by His Majesty King Abdullah of Saudi Arabia and endorsed by the Arab League.

Time is of the essence. We cannot afford more setbacks and delays, or regrets about what might have been had different decisions been made. And now is not the time for recriminations. It is time to look ahead.

We gather today to address the humanitarian and early recovery needs of the Palestinian people after the recent conflict, and the United States joins with others in generously stepping forward to help. Our pledge of over $900 million, designed in coordination with the Palestinian Authority and to be submitted to the United States Congress, will deliver assistance to the people of Gaza and the West Bank.

All of us recognize that human progress depends on the human spirit. That a child growing up in Gaza without shelter, health care, or an education has the same right to go to school, see a doctor, and live with a roof over her head as a child growing up in your country or mine. That a mother and father in the West Bank struggling to fulfill their dreams for their children have the same right as parents anywhere else in the world to a good job, a decent home, and the tools to achieve greater prosperity and peace. That progress toward the goals we seek here today is more likely to grow out of opportunity, than futility; out of hope, than out of misery.

So we will work with our Palestinian partners, President Abbas and Prime Minister Fayyad, to address critical humanitarian, budgetary, security, and infrastructure needs. We have worked with the Palestinian Authority to install safeguards that will ensure that our funding is only used where, and for whom, it is intended, and does not end up in the wrong hands.

In pledging these funds, we are pursuing both a short- and long-term approach. It is not enough just to respond to the immediate needs of the Palestinian people. Our response to today’s crisis in Gaza cannot be separated from our broader efforts to achieve a comprehensive peace. Only by acting now can we turn this crisis into an opportunity that moves us closer to our shared goals.

By providing humanitarian assistance to Gaza, we also aim to foster conditions in which a Palestinian state can be fully realized – a state that is a responsible partner, is at peace with Israel and its Arab neighbors, and is accountable to its people; a state that Palestinians everywhere can be proud of and is respected worldwide.

This is the Palestinian state we all envision. This is the Palestinian state that we have an obligation to help create.

For the Israelis, that means showing the Palestinians that there are benefits to negotiating if their goal is to control their own destiny and live in peace and dignity in an economically viable state.

For the Arab states, it means signaling through words and deeds that the spirit of the Arab Peace Initiative can begin to govern attitudes toward Israel now. For all of us – the Arab states and the wider international community – it means working with the government of the Palestinian people, the Palestinian Authority, to help build a state that can meet international expectations and obligations.

And for the Palestinians, it means that it is time to break the cycle of rejection and resistance, to cut the strings pulled by those who exploit the suffering of innocent people, and show the world what the talent and skills of an exceptional people can build and create.

That is why we’re here today – not only to address Gaza’s urgent needs, but to move ahead toward genuine Israeli-Palestinian and Arab-Israeli peace.

Our aid package is meant to accelerate, not hinder, that effort. …

From Sharm el-Sheikh, Clinton will travel to Jerusalem and Ramallah Tuesday and Wednesday, where she’ll meet Israeli Foreign Minister Tzipi Livni, outgoing Prime Minister Ehud Olmert and President Shimon Peres, as well as Likud chairman Benjamin Netanyahu, who has been asked to form the next Israeli government. She will also go to Ramallah and have meetings there with Palestinian officials.

On Wednesday night, she heads to Brussels for a trans-Atlantic informal dinner discussion, followed by her first NATO ministerial meeting as secretary on Thursday, and for meetings with EU High Representative Javier Solana, External Relations Commissioner Benita Ferrero-Waldner, Czech Foreign Minister Karel Schwarzenberg, and incoming EU President Carl Bildt, the Swedish foreign minister. Assistant secretary of state for European affairs Daniel Fried will be joining Clinton in Brussels for the Europe leg of her trip.

On Friday, she heads to Geneva for meetings with Russian Foreign Minister Sergei Lavrov and her Swiss counterpart. Then, it’s on to Ankara Saturday for meetings with Turkish officials.

UPDATE: The State Department provided more details on the aid package to the Palestinians in a press release this afternoon:

At the March 2, 2009 donors conference for Gaza recovery in Sharm el Sheikh, the United States announced its intent to provide support to the Palestinian Authority (PA) and Gaza recovery totaling approximately $900 million. The assistance will be available in 2009, and is subject to Congressional approval. The assistance includes continued immediate humanitarian support to the Palestinian people in Gaza, including for the UN Consolidated Appeal; budget support for the PA; and further support for the priorities identified by the PA in the Palestinian Reform and Development Plan.

We will work closely with Congress on our assistance package. It will include the following components:

Up to $300 million to meet urgent humanitarian needs, including those identified under the UN appeal and to support the PA’s plan for Gaza. This is to be provided through USAID in coordination with UN agencies, international organizations and USAID grantees, and through the Department of State for UN agencies, ICRC, and other humanitarian organizations.

$200 million in budget support to address the PA’s anticipated $1.15 billion budget shortfall for 2009.

Up to $400 million in 2009 to support priorities identified in the Palestinian Reform and Development Plan (PRDP) that will help the PA solidify economic and institutional reforms in the West Bank. This includes support for private sector development, essential public infrastructure improvements in the West Bank, and security sector assistance coordinated by the U.S. Security Coordinator (USSC).

Correction: USAID’s Acting Administrator Alonzo Fulgham attended the Sharm el-Sheikh donors’ conference as third in the U.S. delegation, a USAID official writes to say. Not, as previously said, George Laudato, USAID’s Acting Assistant Administrator for the Middle East Bureau. FP regrets the error.