State Dept: We are trying to save Palestinian Authority aid funding

The State Department is trying to convince Congress not to cut U.S. funding for the Palestinian Authority (PA), despite the fact that the Palestinians are defying the United States by seeking statehood at the United Nations and specialized U.N. agencies.

"Congress should be aware of the potential second and third order effects of cutting off assistance to Lebanon and the Palestinian Authority," Andrew Shapiro, assistant secretary of State for political-military affairs, told an audience at the Washington Institute for Near East Policy on Friday. "We must ask ourselves, if we are no longer their partner, who will fill the void? We must think about the other potential partners that could fill the space left behind, and that should give us pause."

When the State and Foreign Ops appropriations bill comes up  in the senate, probably next week, foreign aid will be scrutinized like never before by legislators eager to find budget cuts wherever they can. Leaders in both parties have also pledged to cut U.S. aid to the PA in order to punish the Palestinians for seeking statehood outside the peace process.

Just last week, lawmakers reacted angrily to the Palestinians’ successful bid to join UNESCO, which triggered a law requiring the U.S. government to halt its contributions to the organization.

Senate Appropriations State and Foreign Ops subcommittee ranking Republican Lindsey Graham (R-SC) told The Cable on Nov. 1 that Congress is poised to cut off all U.S. funding for the PA, which totaled $550 million in fiscal 2011, despite the fact that he still thinks financial support for the PA is a good idea.

"I don’t think that’s in our near-term or long-term interest, but that’s what’s going to happen, that’s where this thing is headed," Graham said.

The Cable asked Shapiro how the State Department planned to defend PA funding and what the prospects were for success.

"We are in discussions with Capitol Hill about the best way to provide support," Shapiro responded. "Hopefully we’ll be able to reach an agreement with Capitol Hill that preserves our interests."

Shapiro also urged Congress not to place conditions on U.S. aid to Egypt, which includes billions in military and economic support funding each year.

"I know that the uncertainty of the Egyptian transition has prompted some in Congress to propose conditioning our military assistance to Egypt. The administration believes that putting conditions on our assistance to Egypt is the wrong approach," Shapiro said. "Now is not the time to add further uncertainty in the region or disrupt our relationship with Egypt. Conditioning our assistance to Egypt risks putting our relations in a contentious place at the worst possible moment."

He also addressed State Department funding of political training for parties in Egypt, even Islamic parties that may have anti-Western agendas.

"As these Arab countries are going into political transitions, a number of new people are coming into the political process, many of whom describe themselves as Islamists. But that doesn’t necessarily mean that they are anti-democratic." Shapiro said. "We need to support an effort and structure to channel this energy that’s coming into the political process into an understanding of what democracy means and the benefits of it, and our training on the ground is designed to do so."

The Cable also asked Shapiro to explain the State Department’s latest thinking on the proposed $53 million arms sale to Bahrain, which is also facing stiff congressional opposition. State has said it will consider the report of an "independent" Bahraini human rights commission before moving forward with the sale. Shapiro said that U.S. policymakers will also consider the Bahrain government’s response to the report.

"We have committed that we will not move forward with that sale until the report comes out and we are able to assess the reporting and the Bahraini government response," he said.