Hillary Clinton has announced that the United Sates will give an additional £93 million in aid to the Palestinian Authority.
The US Secretary of State made the announcement during a joint video conference with Palestinian Prime Minister Salam Fayyad.
The money is intended to boost the government there and help the Palestinian Authority reduce its budget deficit.
Mrs Clinton said that a peace settlement was still possible, despite a White House condemnation of plans for further construction in east Jerusalem yesterday.
