U.S. offers deal for settlement freeze

JERUSALEM, July 3 (UPI) -- The United States is offering to support Israeli air flights over Arab countries if it agrees to a West Bank settlement freeze, Israeli official sources said.

A report in the Yedioth Aharonoth newspaper Friday quoted Israeli government sources saying the deal was raised at a recent meeting between Israeli Defense Minister Ehud Barak and U.S. Mideast envoy George Mitchell, and has also been a topic of discussion between Israeli and American government officials.

In exchange for an Israeli settlement freeze, Arab countries that have no diplomatic ties with Israel, have agreed to allow Israeli commercial aircraft to enter their air space, the report said. This would significantly reduce flying time to the Far East, and drastically reduce air fares, the report said. Those said to have agreed to the U.S. offer, include Saudi Arabia, Iraq and other Persian Gulf countries.

The U.S. also secured an agreement allowing Israel to reopen interest offices it once had in North Africa and countries along the Persian Gulf, including in Morocco, Tunisia, Oman and Qatar, the paper said.

President Barack Obama's administration reportedly said it has received initial agreements from certain Arab countries to the proposal, but will not publish further details until Israel makes significant steps towards a settlement freeze.

The report also said the U.S. administration has granted the Palestinian Authority a $40 million aid package in 2010, to be used to establish Palestinian Police battalions in the West Bank, as well as to improve the Palestinian judicial system and detention centers.