The money would be part of a $350 million package deal announced by U.S. President George Bush this past week. The Bush administration suggested that Congress consent to send $41 million immediately for an “immediate impact in support of democratic transition.” Under Congressional rules, the money would go for specific projects, and not directly to the Palestinian Administration (PA).



Rice, about to pay her first visit to the Middle East in her new position as successor to Colin Powell, wants part of the money to go directly to “retired” terrorists. Speaking between visits to European countries, she proposed a pension fund for at least 1,000 terrorists.



President Bush's offer of $350 million came after American disappointment at assistance that Arab states have offered. The American aid is to be earmarked for new and modern border crossings, road and water infrastructure, and education and health programs.