The United States Senate approved yesterday a $200 million aid package to Israel, to assist the Jewish state in its war against Palestinian terrorism. The package was passed by a 92-7 margin as part of an overall $28.9 billion anti-terror initiative. The majority of the funding will go towards U.S. homeland security efforts, and to the Pentagon.



The bill also earmarked $50 million in humanitarian aid for the Arabs living under PLO-rule. The funding will bypass Yasser Arafat’s Palestinian Authority and will be given directly to Arab humanitarian organizations. The House of Representatives approved the bill on Tuesday.



On the other hand, Israel\'s Finance Ministry will transfer 70 million shekels (almost $15 million) to the PA in frozen tax monies that, according to the agreements, belong to the PA. Another 140 million shekels are also scheduled to be unfrozen, but according to some reports, they will be used to pay Israeli suppliers - chiefly the Israel Electric Company and health services - Palestinian debts. A total of over two billion shekels of PA tax monies have been frozen by Israel over the past several months. Prime Minister Sharon, at the behest of Americans, is attempting to speed up the easing of restrictions on the PA civilian population.