Foreign Minister Tonio Borg has promised during a visit to the Gaza Strip that Malta will donate funds to the United Nations agency caring for Palestinian refugees.

Speaking during a three-day tour of Israel and the Palestinian territories, Dr Borg said he had met Palestinian businessmen who complained they still faced shortages despite a recent easing of Israel's blockade of the Hamas-run strip.

Israel launched a fierce 22-day offensive against the militant Islamic Hamas in Gaza in December 2008, which killed 1,400 Palestinians according to figures from Palestinian medics and human rights groups.

During the fighting 13 Israelis died, several from rockets and mortars fired by Palestinians into Israel.

Homes and essential infrastructure in Gaza were extensively damaged in the conflict and rebuilding has been hampered by Israeli restrictions on import of construction materials on the grounds they could be used by Hamas to build bunkers and tunnels.

"Malta is interested in launching projects for the benefit of Gaza," Borg told a news conference. "We will financially assist UNRWA (the UN Relief and Welfare Agency) in this respect."

Borg was the fourth European Union foreign minister to visit Gaza this year, after his Irish, German and Italian counterparts, and he said their trips influenced thinking in Brussels.

"I feel that the visits which have taken place in recent months by different foreign ministers from the European Union have made a difference," he said. "The fact that now we are agreeing on certain things about Gaza is a step in the right direction."c

This is Dr Borg's second visit to the region in as many years.

He yesterday visited the Western Wall, the holiest site for Jews, and also had talks with Foreign Minister Avigdor Liberman, who himself was in Malta some months ago.

The visit has coincided with the controversy in Malta over the granting of the power station extension contract, with the Israeli Embassy in Rome having described the choice of BWSC (over Israeli company Bateman) as 'odd' - a development also reported in the Israeli media.

However, Dr Borg's talks focused on the Middle East peace process and areas of bilateral cooperation, including tourism, health and culture.

The first meeting was with the Israeli Culture Minister Limor Livnat where discussions centred on a possible revision to the present agreement on cultural exchanges.

Dr Borg also had a meeting with the deputy health minister Yakov Litzman. Both sides discussed the possibility of exchanging information in the health industry and training courses in both countries on various aspects.

The situtation in the Middle East peace process was discussed during a meeting with Opposition leader Tzipi Livni.

Dr Borg also visited Palestinian territories where he was received by Palestinian Foreign Minister Riyad al-Malki with whom he held extensive talks on the Middle East peace process and the role of the EU. They also discussed bilateral cooperation and Malta’s support to the state-building project of the Palestinian Authority.

The two ministers signed a memorandum of understanding providing for the establishment of a joint political committee which will formalise a higher level of political dialogue reflecting the developing state of relations between the two sides.

A second Memorandum of Understanding was signed with Mashhour Abu Dakka, the Palestinian Authority's Minister of Telecommunications and Information Technology. As a result, Malta shall provide expertise in eGovernment and eLearning, reflecting both the international standing of Malta in these fields, and recognising the emerging role of the ICT sector as a catalyst of the Palestinian economy.

In Jerusalem Dr Borg met Hanan Ashrawi, member of the Palestinian Legislative Council and Executive Committee of the Palestine Liberation Organisation. The meeting also centred on the latest political developments in the region, especially the situation in East Jerusalem.

Dr Borg laid a wreath at the tomb of the late Palestinian President Yasser Arafat.

Dr Borg also met officials of the UN Relief and Works Agency, representatives of civil society, the business community, Maltese nationals living in Gaza and Gazan graduates of the University of Malta as well as the Parish priest of the Catholic community

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