Netanyahu tiptoes around U.S. threat to cut off Palestinian aid

Israeli Prime Minister Benjamin Netanyahu trod carefully on Sunday around a threatened U.S. aid cut to Palestinians, stopping short of backing a funding halt as he repeated calls for a U.N. agency that helps Palestinian refugees to be dismantled.

Netanyahu’s public comments appeared to reflect a desire to show support for a major ally, but also concern that choking off funds would deepen Palestinian hardship and could put Israel and militants on a course for war.

With Palestinians seething over U.S. President Donald Trump’s recognition last month of Jerusalem as Israel’s capital, he threatened on Tuesday to withhold aid money, accusing them of being “no longer willing to talk peace”.

On Friday, in a report denied by a State Department official, the Axios news site said Washington had frozen $125 million in funding for UNRWA. The U.N. agency, founded in 1949 to aid Palestinian refugees, is a main provider of educational and health services in the Gaza Strip.

Netanyahu said UNRWA was “an organization that perpetuates the Palestinian problem.”

“It also enshrines the narrative of the so-called ‘right of return’. Therefore, UNRWA should pass from the world,” he told a weekly cabinet meeting.

Netanyahu made almost identical comments about dismantling UNRWA in June – a message he said at the time he had conveyed to the U.S. ambassador to the United Nations.

Praising Trump’s “critical approach” on the aid issue, Netanyahu steered clear of advocating a suspension of funding for the Palestinians. He said U.N. money for them should be transferred gradually to its global refugee agency UNHCR “with clear criteria for supporting genuine refugees and not fictitious ones, as is happening today under UNRWA.”

Chris Gunness, an UNRWA spokesman, said the refugee crisis was being perpetuated by “failure of the parties to deal with the issue…”

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