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U.S. CANCELS PA FUNDING

TEL AVIV [MENL] -- The United States has cancelled a $90 million development project in the West Bank because of security concerns.

The project was to have constructed a road from the West Bank city of Jenin to Nablus. Funding was to have been allocated by the U.S. Agency for International Development.

U.S. diplomats said the project was unable to proceed over the last few months amid fighting between Israeli and Palestinian forces around the city. They said the funding for the road would be diverted to Palestinian water projects.

"Since October 2000, it has been harder to work in the Palestinian areas, given the security situation and the Israeli closures," a U.S. diplomat said. "We have informed the Palestinians and the decision [to cancel the road project] was not unilateral."

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