US downgrades Palestinian mission, places it under embassy in Israel

In this file photo taken on May 14, 2018 US ambassador to Israel David Friedman delivers a speech during the opening of the US embassy in Jerusalem on May 14, 2018. The United States downgraded its main diplomatic mission to the Palestinians on Thursday, October 18, 2018, placing it under the authority of the US embassy to Israel. (AFP / MENAHEM KAHANA)
Updated 19 October 2018
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US downgrades Palestinian mission, places it under embassy in Israel

  • The move will make the US ambassador to Israel, David Friedman, the main interlocutor with the Palestinian leadership
  • Pro-Israel advocates hailed the decision, saying it confirmed the US recognized the whole of Jerusalem as part of Israel

WASHINGTON: The United States downgraded its main diplomatic mission to the Palestinians on Thursday, placing it under the authority of the US embassy to Israel.
US Secretary of State Mike Pompeo said the consulate general, a separate office which handled dealings with the Palestinians, would be replaced by a new Palestinian Affairs Unit inside the controversial new US embassy in Jerusalem.
The move will make the US ambassador to Israel, David Friedman, who is reviled by Palestinians over his support for Israeli settlements in the West Bank, the main interlocutor with the Palestinian leadership.
The change, quickly condemned by the Palestinians, follows a series of setbacks for them at the hands of President Donald Trump, who has turned US policy sharply toward Israel.
Pro-Israel advocates hailed the decision, saying it confirmed the US recognized the whole of Jerusalem as part of Israel.
“This decision is driven by our global efforts to improve the efficiency and effectiveness of our operations. It does not signal a change of US policy,” Pompeo said in a statement.
He said the United States “continues to take no position” on how any peace deal between the Israelis and Palestinians would take shape.
The Palestinian leadership rejected Pompeo’s “efficiency” explanation.
The decision has “a lot to do with pleasing an ideological US team that is willing to disband the foundations of American foreign policy, and of the international system, in order to reward Israeli violations and crimes,” the Palestinians’ chief negotiator Saeb Erekat said.
“The Trump administration is part of the problem, not part of the solution,” he added.
International powers have for decades maintained separate and autonomous representations to Israel and the Palestinians on the basis of supporting the eventual creation of an independent Palestinian state.
They have insisted that the status of Jerusalem, which both the Israelis and Palestinians see as their capital, should be negotiated between the parties as part of any end deal.
Last December, Trump reversed longstanding US policy and recognized Jerusalem as the capital of Israel, prompting Palestinian president Mahmud Abbas to boycott his administration.
The embassy was officially transferred on May 14.
Since then, the Trump administration has forced the Palestinians to shutter their Washington mission and has slashed hundreds of millions of dollars in aid, in a bid to force them to the negotiating table.
Trump’s son-in-law Jared Kushner, alongside Friedman and peace envoy Jason Greenblatt, has been working for months on a still-secret peace proposal, which Palestinians fear will be overly one-sided toward Israel.
The move Thursday nearly closes off all direct diplomatic contacts between the United States and the Palestinians, analysts said.
Ofer Zalzberg of the International Crisis Group think-tank said the US would be the only major power without a separate, independent representative office for the Palestinians.
“Other countries have gone to great lengths to avoid having the same representatives to Israel and the Palestinian Authority,” he told AFP.
Robert Danin, a former senior US government official dealing with Israeli-Palestinian issues, said the move was a victory for “hard right partisans” who have sought to eliminate the Palestinian-focused consulate general “for decades.”
The consulate general “is THE eyes and ears into Palestinian politics and society. Its independence from US Embassy Israel provided Washington w/solid, unvarnished reporting and analysis,” he said on Twitter.
But Eugene Kontorovich, a law professor with the Jerusalem-based Kohelet Policy Forum and advocate for the embassy move, said the decision was more evidence the US considered Jerusalem to be fully part of Israel.
“This step confirms that the US recognizes the entire city as Israel’s capital,” he said.
State Department spokeswoman Heather Nauert defended the move, saying the new Palestinian Affairs Unit inside the embassy would maintain contacts with Palestinians in the West Bank, Gaza Strip and Jerusalem at the same level as before the change.
“We value our relationship with the Palestinian people. We look forward to continued partnership and dialogue with them and, we hope in future, with the Palestinian leadership,” she said via Twitter.


Lebanon bank deposits up 4% on year

Updated 15 November 2018
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Lebanon bank deposits up 4% on year

BEIRUT: Bank deposits in Lebanon have risen by 4 percent on the year, Central Bank Governor Riad Salameh said on Thursday, and he maintained his economic growth outlook for 2018 at 2 percent.

In July Salameh had said he expected bank deposits to grow by more than 5 percent in 2018.

In October the World Bank and the International Monetary Fund (IMF) halved their growth outlook to one percent for Lebanon, where public debt is about 150 percent of gross domestic product.

“Lebanese banks have succeeded in maintaining foreign exchange inflows into their sector supported by (the central bank),” Salmeh said in a televised speech at a Beirut economic conference.

With growth low and traditional sources of foreign exchange — tourism, real estate and foreign investment — undermined by years of regional tension, Lebanon increasingly relies on dollars expatriate Lebanese deposit in local banks.

The banks buy government debt, which finances the country’s eye-watering public debt and twin deficits.

The central bank also brings in dollars through complex financial operations with local banks to boost foreign currency reserves needed to defend the Lebanese pound’s peg to the dollar.

However, deposits have been growing at a slower rate since war broke out in neighboring Syria in 2011, and deposit growth rates are closely watched.