Jordan Cancels $1-Billion West Bank Plan

A $1.3-billion development plan in the Israeli-occupied lands was canceled Thursday by Jordan as part of what officials called a plan to give the PLO responsibility for the 1.5 million Palestinians living there.

Jordan Radio said the announcement was made after a Cabinet meeting led by Prime Minister Zaid Rifai. The radio said Jordan will continue its “national role as a confrontation state and a prime party in the Arab-Israeli conflict.”

A rebellion among the 1.5 million Palestinians in the occupied territories began Dec. 9 and has come largely under direction of the Palestine Liberation Organization. More than 210 Palestinians and three Israeli Jews have been killed.

Broad Changes Confirmed

A senior Jordanian official confirmed reports in the Arab press that King Hussein is making broad changes in Jordan’s relationship with the Palestinians, but the radio quoted Rifai as saying the new measures “will not harm the national unity among Palestinians and Jordanians in the kingdom.”

The five-year West Bank development plan was established in 1986 by agreement with the PLO to finance health, education, housing, and cultural and Islamic affairs projects in the West Bank and Gaza Strip.

The West Bank was under Jordanian rule until Israel captured it in the 1967 Arab-Israeli War. Israel captured the Gaza Strip from Egypt.

Although Israel occupied the West Bank, Jordan continued paying salaries and pensions of many government employees there, and West Bank representatives sit in the Jordanian Parliament. The 60-member upper house now includes 30 from the West Bank.

Two-thirds of Jordan’s 3.5 million people are of Palestinian origin, including the entire population of the West Bank.

A senior Jordanian official, speaking on condition of anonymity, said of Thursday’s action:

“This is part of King Hussein’s decision to free himself from representation of the Palestinian people and leaves the doors open for the PLO to shoulder responsibility on its own. The king’s decision also reflects the PLO’s wish to take over all Palestinian affairs in the West Bank and Gaza Strip.”

According to the radio, Jordan will “urge friendly and brotherly countries to continue their support and financial assistance to the Palestinian uprising in the occupied territories.”

On Wednesday, the Saudi newspaper Al Sharq al Awsat quoted Rifai as saying that “decisive developments” are planned to give Palestinians greater responsibility as an entity.

Al Qabas, a Kuwaiti newspaper, predicted Wednesday that Hussein would dissolve Parliament and change the government, with Marwan Kassem, chief of the royal court, the strongest candidate to succeed Rifai.

It said Hussein has decided to dissociate himself from the Palestinian question and let the PLO take the responsibility. Al Qabas, which usually is well-informed on Jordanian affairs, said Rifai would become Hussein’s personal representative.

Israeli Reaction

Israeli leaders said they expect no major change in Jordan’s policy.

Prime Minster Yitzhak Shamir said: “We still see the Jordanians as a partner in direct peace negotiations. . . . This doesn’t change anything, as far as we’re concerned.”

Foreign Minister Shimon Peres, who has encouraged Jordan to form a joint negotiating delegation with moderate Palestinians, said of Hussein’s action, “What he’s doing is not a change in policy but a purely technical move.”

Peres said it would have no effect as long as the king “does not declare war on us and does not close the Jordan bridges” or prevent Palestinians from holding Jordanian passports.