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UN: Gaza
economy may crash soon unless Israel reopens borders
By Avi Issacharoff, Barak Ravid
and
Jonathan Lis,
Haaretz Correspondents
Gaza's economy could collapse within
weeks unless Israel reopens crucial commercial trade crossings, UN
officials and Gazan businessmen warned Wednesday.
More
than 68,000 workers have lost their jobs since Gaza's borders were
closed in mid-June, following fierce factional battles in which Hamas
expelled the forces of the rival Fatah faction, said Nasser el-Helou,
a prominent Gaza businessman.
The closings added to the already high unemployment
rate in the narrow coastal strip, bringing it up to about 75 percent,
according to the MAS Institute for Economic Studies.
In recent weeks, some
border points were opened to transfer humanitarian
supplies. But no industrial material has entered Gaza,
bringing construction activity and manufacturing to a
halt, including $93 million worth of UN-funded
projects employing 121,000 people, according to the
United Nations.
The appeal came a day before the so-called Quartet of
Mideast mediators - the U.S., the UN, the European
Union and Russia - meet in Portugal with their newly
appointed emissary, former British Prime Minister Tony
Blair.
"We are asking them (the Quartet) to take
consideration of what is happening here. They must
take political decisions to open all the crossings,
and then the operational solutions will be found,"
said John Ging, director of the United Nations Relief
Works Agency in Gaza.
The UN provides food aid to 80 percent of Gaza's 1.4
million people.
"Please lift the siege of Gaza," el-Helou said. |Mr.
Blair, the siege is destroying our economy, our
community." El-Helou said Israeli business partners
had begun canceling contracts because
Palestinian factories were unable to meet deadlines.
He said if the borders remained closed, Gaza's economy
would collapse in one or two weeks maximum.
On Tuesday, however, Haaretz reported that Palestinian
sources said PA Chairman Mahmoud Abbas asked Israel
and Egypt to prevent the movement of people from Egypt
to the Gaza Strip through the Rafah border crossing,
after Hamas' mid-June takeover of the coastal strip.
The sources said that Abbas said if the crossing is
opened, Hamas will be able to let in thousands of
people without supervision into Gaza - including
activists who could strengthen the group, which rival
Abbas' Fatah movement.
The sources added that Abbas and a number of his aides
asked for that the request not be made public.
On Wednesday, however, Chief Palestinian negotiator
Saeb Erekat denied the Haaretz report, saying that the
PA has requested the opening of the border on numerous
occasions.
The Rafah border crossing has remained closed since
Hamas' ousting of Fatah from Gaza.
Israel is attempting to bolster Abbas and his Fatah
movement in its struggle with Hamas over control of
the PA. It
published
Tuesday a list of prisoners jailed in Israel, mostly
from Fatah, to be released Friday as one such gesture
of support.
As an alternative to the Rafah crossing, Abbas asked
that the Kerem Shalom crossing on the Israel-Gaza
border be used for the thousands of Gazans who have
been barred entry through Rafah and held up on the
border for a number of weeks. Some who were ill have
since died while waiting.
Israel also suggested opening Kerem Shalom in order to
deal with the stranded Palestinians, but Hamas has
refused.
The factional fighting among the Palestinians has led
to a policy dispute within Egypt as well, over the
question of Rafah and contacts with Hamas in general.
Sources close to Egyptian Intelligence chief Omar
Suleiman's argue Egypt should work with Hamas and open
the crossing, but the Egyptian embassy in Tel Aviv
opposes this measure. Those against strengthening ties
with Hamas believe this will hurt Abbas
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