The New Nation - Internet Edition

Reuters, Paris

Delegations from more than 60 countries are expected to offer around $5.6 billion on Monday to help lift the Palestinian economy and underpin the renewed Middle East peace talks.

The one-day meeting is the financial sequel to the launch last month of the first peace negotiations between Israelis and Palestinians in seven years. The talks are aimed at achieving an agreement on Palestinian statehood by the end of 2008.

"To turn this dream into reality we have organized this conference in Paris," French Foreign Minister Bernard Kouchner told Europe 1 radio on Monday.

"It is not just a question of money. It is a donors conference but also a political conference," he added.

While the meeting will focus on plans to boost the Palestinian economy, envoys from dozens of countries are expected also to discuss outstanding contentious issues. As delegates gathered, Palestinian negotiators said Israeli plans to build new homes on occupied land near Jerusalem could cloud the next round of peace talks, due to be held on December 23. "We need a clear-cut Israeli decision concerning this issue," said Palestinian spokesman Nabil Abu Rdainah.

U.S. Secretary of State Condoleezza Rice said the dispute was "ever more reason that it's time to get an agreement" and appealed to both sides not to "consider every bump in the road to be a barrier.