British Prime Minister Gordon Brown demanded Sunday that Israel cease settlement construction and promised more money to jump-start the battered Palestinian economy. In his first trip to Israel and the Palestinian territories as Britain's leader, Brown repeatedly stressed that economics are key to Mideast peace, and said Israel should ease travel restrictions in the West Bank that have hindered commerce. But his strongest comments were reserved for the settlements: “I think the whole European Union is very clear on this matter: We want to see a freeze on settlements.” “Settlement expansion has made peace harder to achieve. It erodes trust, it heightens Palestinian suffering, it makes the compromises Israel needs to make for peace more difficult,” Brown said at a news conference with Palestinian President Mahmoud Abbas in the Israeli-occupied West Bank town of Bethlehem. Abbas went further in his criticism of Israel's construction in disputed east Jerusalem and the adjacent West Bank, telling Brown that Israel lacks commitment to the “principles and spirit” of Mideast peace efforts. He singled out stepped-up construction of homes for Jews in areas of Jerusalem the Palestinians claim for their capital. At a joint appearance after meeting Brown later in Jerusalem, Israeli Prime Minister Ehud Olmert acknowledged that Israel disagrees with the Palestinians and Britain over the issue of settlements, but added: “I am absolutely convinced, Mr. Prime Minister, that this should not stand in the way of an agreement between us and the Palestinians.” Olmert repeated his contention that agreement is “closer than ever,” and said he hoped for an accord by the end of the year. Brown also pledged further economic aid to the Palestinians aimed at bolstering US-backed Middle East peace talks. “We have pledged 500 million dollars for economic development in Palestine over three years to 2011,” Brown said after meeting President Mahmoud Abbas in Bethlehem. “I can announce today a further commitment of 60 million dollars, 30 million of which we will give as direct budgetary support, bringing our total support to the Palestinian Authority this year to 175 million dollars,” he said. In keeping with his “economic roadmap” to peace, Brown pledged support for a new mortgage finance authority which he said would help to finance some 30,000 new Palestinian homes and generate up to 50,000 new jobs. Brown – who spent 10 years as finance minister under Tony Blair, whom he succeeded as premier in June 2007 – also said that a recent international investment conference in Bethlehem had been a success and that he and Abbas had agreed that London would host a similar follow-up event later this year. “Palestine is open for business,” Brown said.
