TEL AVIV, June 30: US National Security Adviser Condoleezza Rice has proposed a one-billion-dollar aid package for Palestinians, the Israeli daily Yediot Aharonot reported on Monday.

Ms Rice, on a brief weekend visit to region, said Washington was ready to deliver “nearly one billion dollars” to ease conditions in the Palestinian territories, economically devastated after nearly three years of low-level war with Israel, Yediot reported.

The US official unveiled her proposal during a meeting on Sunday with Israeli Prime Minister Ariel Sharon’s chief of staff Dov Weisglass and Palestinian finance minister, Salam Fayad, Yediot said.

Washington wants to create a network of hospitals and social institutions to build support for Palestinian premier Mahmoud Abbas and erode the popularity of Hamas, which has won adherents through its effective welfare network in the Gaza Strip. —AFP