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Arafat Blocking Key Palestinian Reform
(AP/Los Angeles Times) Palestinian leader Yasser Arafat is preventing his prime minister from implementing a financial reform that is a key European and American demand, and has become a condition for much-needed financial aid, cabinet ministers said Tuesday. Qurei's cabinet approved legislation on Saturday allowing the PA to pay security forces directly into their bank accounts, but Arafat refused to implement the cabinet decision. Currently, security officers are given lump sums of cash and then distribute the money to their employees. International donors have said the cash distributions are an invitation for corruption. The Palestinians rely on international assistance for 60% of their annual budget.