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GAO-06-1062R 1 (2006-09-29)

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       Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548







   September 29, 2006

   The Honorable Mitch McConnell
   Chairman
   The Honorable Patrick J. Leahy
   Ranking Minority Member
   Subcommittee on State, Foreign Operations,
   and Related Programs
   Committee on Appropriations
   United States Senate

   The Honorable Jim Kolbe
   Chairman
   The Honorable Nita M. Lowey
   Ranking Minority Member
   Subcommittee on Foreign Operations,
   Export Financing, and Related Programs
   Committee on Appropriations
   House of Representatives

   Subject: Foreign Assistance: Recent Improvements Made, but USAID Should Do More to
   Help Ensure Aid Is Not Provided for Terrorist Activities in West Bank and Gaza

   The United States has worked for decades to achieve a resolution to the Israeli-
   Palestinian conflict through initiatives such as the 1993 Oslo Accords and the more
   recent 2003 Roadmap for Peace. During fiscal years 1993 through 2005, the United States
   provided more than $2 billion in assistance to Palestinians in the West Bank and Gaza,
   including nearly $275 million in fiscal year 2005, to help achieve this goal. In particular,
   the 2005 assistance was provided to support the president of the Palestinian Authority,
   elected in January 2005, and to facilitate the Israeli disengagement from parts of the West
   Bank and Gaza, among other things. This assistance, primarily administered by the U.S.
   Agency for International Development (USAID), has been directed mainly toward five
   development sectors: economic growth, water and infrastructure, democracy and
   governance, health, and higher education.

   In recent years, the United States has taken several steps to help ensure that U.S.
   resources, including its aid to the West Bank and Gaza, do not support terrorist activities.
   On September 23, 2001, President Bush issued an executive order prohibiting the support


GAO-06-1062R West Bank and Gaza Antiterrorism Procedures

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