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Peres, Arafat Resolve Thorny Aid Issue in Oslo

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<i> Associated Press</i>

Israeli Foreign Minister Shimon Peres and Palestine Liberation Organization Chairman Yasser Arafat resolved the thorny issue of development aid for the Palestinian territories Tuesday.

After an afternoon of talks in Oslo, where both men came to mark the one-year anniversary of the Mideast peace accord, Israeli negotiators said that Arafat had agreed to drop the demand to address Jerusalem’s status as part of an aid package, according to a preliminary draft of their final statement.

Peres and Arafat were meeting privately and with Norwegian and U.N. officials to discuss, among other things, $2.3 billion in development aid for the Palestinian territories.

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