JEDDAH, 11 August 2003 — Palestinian Prime Minister Mahmud Abbas has denied that Saudi money intended for needy Palestinians reaches militant groups. “Saudi financial assistance to needy Palestinians goes through the Palestinian Authority and not to militant groups,” he told reporters on Saturday.

The United States wants to ensure that the relief money the Kingdom sends to the Palestinians does not fall into the hands of organizations Washington considers terrorists.

“We have been receiving financial assistance from Saudi Arabia since the formation of the Palestine Liberation Organization. It is used to build houses, support poor students and buy relief supplies,” the Palestinian prime minister said.

Abbas was here for talks with Custodian of the Two Holy Mosques King Fahd and Crown Prince Abdullah, deputy premier and commander of the National Guard, on the obstacles facing the Middle East road map and the situation in the occupied Palestinian territories. He also briefed the king and the crown prince on the outcome of his recent visit to the United States and talks with the Israeli government.

Abbas said the crown prince’s Middle East peace initiative represented a strong basis for a solution to the Palestinian issue. Prince Abdullah’s initiative became part of the road map after it was endorsed by the Arab League summit in Beirut.

The prime minister praised the sense of responsibility shown by Palestinian groups in keeping the truce despite the killing of their leaders by the Israeli forces.

“I hope Israel will also stop its aggressive practices and assassination attempts,” he said and urged the international community to look into the matter seriously in order to prevent a return to square one.

Abbas said the Kingdom helped build 600 housing units in Gaza and the West Bank for people who had lost their homes in Israeli attacks. Saudi Arabia is providing financial assistance to more than 18,000 Palestinian students to pursue their education.