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<title>CANADA ANNOUNCES ECONOMIC AND SOCIAL DEVELOPMENT ASSISTANCE TO PALESTINIANS</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1">November 30, 1998 <em>(1:00 p.m. EST)</em> No. 273</font></p>
<p align="CENTER"><font face="Arial" size="+1">CANADA ANNOUNCES ECONOMIC AND </font></p>
<p align="CENTER"><font face="Arial" size="+1">SOCIAL DEVELOPMENT ASSISTANCE TO PALESTINIANS</font></p>
<p><font face="Arial"></font><font face="Arial">Foreign Affairs Minister Lloyd Axworthy and Minister for International Co-operation and Minister responsible for
La Francophonie Diane Marleau announced simultaneously today in Washington D.C., and in Ottawa, that
Canada will provide support for the economic and social development of Palestinians over the next four years.
The announcement came as Minister Axworthy attended the Conference to Support Middle East Peace and
Development.</font></p>
<p><font face="Arial">"When I was in Gaza and the West Bank last June, I saw the urgent need for ongoing support to help
Palestinians improve their living conditions," said Madame Marleau. "It is also imperative that we continue to
support activities that will help build a lasting peace in the region, since peace and development are intertwined.
Peace is a necessary condition for poverty reduction, yet poverty and lack of opportunity are often the root
causes of conflict."</font></p>
<p><font face="Arial">"The progress that has been achieved in the peace process in the past month demonstrates that negotiation is
the only road to peace," said Mr. Axworthy. "With this contribution, we are demonstrating, in a very practical
way, Canada's commitment to a just, lasting and comprehensive peace."</font></p>
<p><font face="Arial">Canada's assistance will help Palestinian refugees in the Middle East to meet their basic needs by such means
as rebuilding health clinics, rehabilitating shelter, and building sanitation and water facilities. One of the projects
that the Canadian International Development Agency (CIDA) will continue to support over the four years is the
Palestinian Housing and Mortgage Corporation, which will provide a major impetus to the development of the
housing sector, creating both economic activity and better housing for Palestinians.</font></p>
<p><font face="Arial">Canada is committed to the peace process in the region, and our support will also be used for projects that
enhance dialogue between Israelis and Arabs and that will help to build lasting relationships among all peoples
in the Middle East. One such project is the establishment of a joint Israeli-Palestinian training scheme in the
field of information technology.</font></p>
<p><font face="Arial">The Conference that Mr. Axworthy is attending brings together the international community in a powerful
demonstration of support for the peace process, in particular the Wye River Memorandum, which was signed
last month between Israel and the Palestinians. The meeting is hosted by the United States government.
Foreign ministers of all major donor nations, along with the World Bank, the International Monetary Fund and
the United Nations, have been invited to attend. One of the goals of the Conference is to obtain pledges of
enhanced assistance on a multi-year basis to meet the development needs of the West Bank and Gaza.</font></p>
<p><font face="Arial">Canada has taken an active role in the multilateral track of the Middle East Peace Process (MEPP) since its
inception. Canada chairs the Refugee Working Group, which has sought ways to improve the conditions of
Palestinian refugees even during periods when bilateral negotiations were stalled. Canada recently opened a
Representative Office in Ramallah to more efficiently deliver its program of assistance.</font></p>
<p><font face="Arial">CIDA will be providing a total of $92 million over four years for the projects announced today. Funding for these
projects was provided for in the February 1998 federal budget, and is therefore built into the existing fiscal
framework.</font></p>
<p align="CENTER"><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">André Doren</font></p>
<p><font face="Arial">Office of the Minister for International Co-operation and</font></p>
<p><font face="Arial">Minister responsible for La Francophonie</font></p>
<p><font face="Arial">(819) 997-6919</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Canadian International Development Agency</font></p>
<p><font face="Arial">(819) 953-6534</font></p>
<p><font face="Arial">E-mail: info @acdi-cida.gc.ca</font></p>
<p><font face="Arial">Internet: http://www.acdi-cida.gc.ca </font></p>
<p><font face="Arial">Debora Brown</font></p>
<p><font face="Arial">Office of the Minister of Foreign Affairs</font></p>
<p><font face="Arial">(613) 995-1851</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
<p><font face="Arial">This document is also available on the Department of Foreign Affairs and International Trade Internet site:
http://www.dfait-maeci.gc.ca</font></p>
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