Qatar proposes $1 bln fund for Jerusalem, offers $250 mln

DOHA, March 26 Tue Mar 26, 2013 5:06am EDT

DOHA, March 26 (Reuters) - Qatar called on Tuesday for the immediate establishment of a $1 billion fund to help Palestinians in Arab East Jerusalem, and offered to contribute $250 million to it.

Qatar's Emir, Sheikh Hamad bin Khalifa Al-Thani, made the proposal at the opening of an Arab summit in Doha that is expected to focus on the crisis in Syria and stalled Israeli-Palestinian peacemaking.

The emir did not elaborate on the practicalities of the fund. But Arabs worry that Israeli settlement building on lands occupied in the 1967 Middle East war, especially in Arab East Jerusalem, has made a two-state solution backed by the United States unfeasible.

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