Palestinians give cool reception to Netanyahu plan

Palestinian officials on Thursday gave a cool reception to a new Israeli plan to develop the West Bank economy, saying the initiative “will make things worse” if it is not accompanied by negotiations aimed at reaching a final peace accord.

The skepticism from the Palestinians came just over a week before the new Israeli prime minister, Benjamin Netanyahu, heads to Washington for talks. Netanyahu, who took office in late March, is still formulating his foreign policy and is expected to present his vision for Mideast peace when he meets President Barack Obama.

Netanyahu has resisted international calls to endorse the goal of forming a Palestinian state on lands currently controlled by Israel. The “two-state solution” is a centerpiece of American policy in the region.

Netanyahu has argued that the Palestinians are not ready for independence. Instead, he has called for “economic peace,” a vaguely defined plan to boost the Palestinians’ moribund economy to lay the groundwork for future peace talks.

Netanyahu’s office said late Wednesday he would head a high-level committee that will work on developing the Palestinian economy and improving the quality of life in the West Bank.

The committee will include Israel’s finance and defense ministers and will soon begin work on several development projects in the West Bank, the statement said.

The Palestinians have greeted Netanyahu’s economic plan with skepticism, saying it is little more than a delaying tactic to prevent them from gaining independence.

Palestinian President Mahmoud Abbas is scheduled to plead his case at the White House in late May, shortly after Netanyahu’s visit.