Wasia Quartet seen close to Palestinian aid deal

BRUSSELS, June 16 (Reuters) The quartet of Middle East peace brokers is close to an agreement on a temporary mechanism to channel aid to the Palestinians while bypassing the Hamas-led government, European Union officials said today.

EU leaders meeting at a summit in Brussels were expected to endorse a European Commission proposal for the aid mechanism, which the Quartet, the European Union, the United States, Russia and the United Nations, agreed last month was necessary to prevent the Palestinian territories sliding into chaos.

The EU leaders would agree the plan would focus on essential supplies and running costs for social services and health, as well as supplies of utilities, including fuel, and social allowances, according to draft conclusions of the summit due to be agreed later today.

''We are very close to an agreement,'' EU External Affairs Commissioner Benita Ferrero-Waldner told reporters, referring to the Quartet.

Asked about differences in approach with Washington, she replied: ''I think it is very important to see that we have done this of course together with our partners and this is why we have negotiated and we have tried to find a solution with which everybody can live.'' There have been indications the plan agreed to by the Europeans was at odds with two key players, Israel and the United States, which have opposed payments of ''salaries'', but EU officials and ministers said an agreement was near.

An EU official said the mechanism would be endorsed by the Council of EU leaders on the understanding Washington could live with the plan, which the European Union's executive was charged with drawing up by the quartet.

''The Community stands ready to contribute a substantial amount to the international mechanism,'' the draft summit conclusions said.

They said other donors, including Arab states, were invited to ''consider early and substantial contributions''.

The EU's executive has said it hopes to have the mechanism up and running my the start of next month.

REUTERS SB KP1700