RAMALLAH, Palestinian Territories – The Palestinian Authority rejected on Saturday a package of economic co-operation measures announced by Israel the day before, calling it “totally unacceptable”.

Under international pressure to ease the plight of the Palestinians, Israeli Prime Minister Benjamin Netanyahu on Friday approved a raft of measures that included a proposal for developing natural gas fields.

His announcement, which followed a meeting with Tony Blair, special envoy of the Middle East diplomatic Quartet, preceded a meeting of the Quartet on Saturday in Munich, Germany aimed at trying to revive stalled peace talks.

“The announcement by the Israeli government and the Quartet’s special envoy is totally unacceptable,” chief Palestinian negotiator Saeb Erakat told AFP.

“We don’t believe in these measures, which are aimed solely at destroying confidence between Israelis and Palestinians,” said Erakat, who accused Netanyahu of “procrastination”.

In a statement on Friday, Netanyahu said that steps would be undertaken to make Hamas-run Gaza “independent of Israeli infrastructure by helping to develop their electricity plants, water and sewerage treatment”.

He also proposed a start to negotiations with the Palestinian Authority, which holds sway in the West Bank, to develop a gas field it controls that is adjacent to an Israeli one.

“We need to develop both simultaneously,” the prime minister said, recalling Israel’s interest in finding alternatives to gas imports from Egypt, scene of a second week of anti-government unrest.

Revenues from the Israeli field would go to the Israeli government, and those from the Palestinian field to the Authority, he said.

“This is something that the Palestinian Authority expressed interest in,” Netanyahu said. “I think this is good for stability, good for prosperity and good for peace.”

He cautioned, however, that economic relations were no substitute to a political process leading to a lasting Middle East peace.

Erakat said Saturday: “If Netanyahu wants to establish mutual trust and peace, he must stop settlement-building in the West Bank and east Jerusalem immediately and recognise the ‘terms of reference’ of the peace process, starting with the recognition of a Palestinian state based on 1967 borders.”

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