CAIRO, December 13 (IslamOnline & News Agencies) - Arabs gave mixed reactions Friday, December 13, to Washington's 29-million-dollar initiative to foster democracy in the Middle East, with some asserting the key to the region's problems is the Israeli-Palestinian conflict.

Egypt, one of Washington's closest allies, leveled the harshest criticism against the plan unveiled Thursday, December 12, amid heavy fanfare by Secretary of State Colin Powell, Agence France-Presse (AFP) reported.

If Washington really wanted to promote a stable, prosperous Middle East it should tackle the Palestinian issue before offering any program to bolster democracy, stressed Egypt.

"Despite certain positive points in the U.S. program, we observe that it does not deal with the main problem which is at the root of all other problems in the region," said Egyptian Foreign Minister Ahmed Maher.

It was time "to settle the conflict, put an end to the Israeli occupation, and give a chance to the people of the region to live in peace and security," he underlined, in a jibe at Washington's hands-off approach to the 26-month-old Palestinian Intifada against the Israeli occupation.

Announcing the plan, Powell claimed transforming Palestinian leadership was the cornerstone for Middle East peace, reinforcing the U.S. administration's desire for a "fresh leader" to replace elected Palestinian President Yasser Arafat.

Meanwhile, Qatar, an emirate with close alley to the U.S. which Powell also singled out for praise while unveiling the initiative, reiterated support for the new U.S. plan.

"Qatar receives favorably the American initiative for a partnership between the United States and the Middle East," said a Qatari foreign ministry spokesman.

"Qatar hopes that this initiative succeeds in increasing the possibilities of political, economic and social development and the opportunity for popular participation in the Middle East region," the spokesman said in a statement carried by the official news agency, QNA.

The emirate hopes that the U.S. initiative "will guarantee a propitious atmosphere to install an equitable and comprehensive peace and bring security and stability to the Middle East."

The plan, entitled the U.S.-Middle East Partnership Initiative, also received a warm reception in Jordan, a close U.S. Mideast alley, although the Jordanian media took a wait-and-see approach.

On the eve of Powell's speech, Jordanian King Abdullah II gave the thumbs up to the U.S.-Middle East Partnership Initiative, during a video conference with businessmen and officials in Washington and five Arab countries.

"It is an important initiative and it is a measure of the close friendship and positive future we both see," said the king, whose country has embarked on a social-economic reforms package with foreign donor assistance, including U.S.

The Jordanian pro-government daily Al-Rai stressed it "is high time for the U.S. administration to implement its 'vision' and translate into concrete steps the figures and numbers contained in its partnership initiative."

As in Egypt, Washington could not escape mounting Arab concern about the Palestinian cause.

The paper highlighted the rights of the Palestinian people living under Israeli occupation and stressed that violence was scaring off investors.

It also called on Washington to really put its money where its mouth is.

"One wonders if 29 million dollars is enough to deal with these difficult conditions," the newspaper said, in reference to the funds Powell said Washington will initially allocate to promote "democracy", education and jobs.

Israel, meanwhile, welcomed the U.S. initiative but remained skeptical on the results it could produce.

"He (Powell) talked about the importance of stopping incitement and improving education in the Arab world.

"Obviously, we see eye to eye with the Americans on this," an Israeli government official told AFP.

"It will take a generation, if not more, to change, but it's definitely a positive step in the right direction," he said on condition of anonymity.

The initiative follows U.S. analyses seeking the cause of hatred toward United States from Muslims around the world following last year's September 11 attacks on New York and Washington.

It is intended, observers told AFP, as a response to accusations that Washington's interests in the region are oil and support of Israel, and that it is indifferent to the aspirations of Arab people.

Powell said Washington was initially allocating some 29 million dollars for the initiative and would seek "significant additional funding" from Congress, in addition to the one billion dollars in economic assistance the United States already provides to the Arab world.

Fact Sheet Outlines U.S.-Middle East Partnership Initiative

Summary:

- The U.S. -Middle East Partnership Initiative will provide a framework and funding for the U.S. to work together with governments and people in the Arab world to expand economic, political and educational opportunities for all.

- The Initiative will encompass the more than $1 billion in assistance that the U.S. government provides to Arab countries annually. The United States is also committing $29 million in initial funding for pilot projects in support of reform in each area listed above. We will also be requesting significant additional funds next year.

- The Initiative is a partnership and we will work closely with governments in the Arab world, other donors, academic institutions, the private sector and non-governmental organizations.

- As part of the Initiative, we will review existing U.S. assistance programs in the region to ensure our aid is reaching as many people as possible across the region, with a particular emphasis on women and children. We also want to insure that we are providing the most effective and efficient assistance possible.

- Deputy Secretary of State Richard Armitage will serve as coordinator for the Initiative. The Initiative will be managed by the Near East Affairs Bureau of the Department of State.

- Examples of programs we will fund and expect to fund in the future

include the following:

Education

- "Partnerships for Learning " program to share knowledge with all levels of society in the Middle East through programs such as a Georgia State University workshop for non-governmnetal (NGO) leaders from Saudi Arabia, Kuwait, Yemen and the United Arab Emirates.

- Programs focused on improving the lives of girls and women through literacy training and scholarships to stay in school.

- Efforts that expand access to bodies of knowledge and promote active learning, for example through e-learning, English teaching and book publishing initiatives. We will focus in particular on connecting more schools and students to the Internet.

- Implementing teacher training programs at the primary and secondary school levels and expanding university linkages for higher education.

- Scholarships for undergraduate study in the United States and in American universities within the region, focusing on degrees in fields such as economics, education, business administration, information technology, and the sciences.

Economic Reform and Private Sector Development

- Assistance to Arab members of the World Trade Organization (WTO) to help them comply with their commitments and technical assistance on WTO criteria to aspiring WTO members in the region.

- Enterprise funds with private sector management to provide capital and technical assistance to promising entrepreneurs and their business ventures. We will also establish new micro-enterprise programs to help new micro-business.

- New Department of Commerce Special American Business Internship Training scholarships, which will provide internships in American companies, and also will focus on developing networks and training opportunities for women entrepreneurs from the Middle East.

- Assistance in financial sector reform for governments across the region.

- Programs to assist on-going efforts to increase transparency and fight corruption.

Strengthening Civil Society

- Through mechanisms such as the Middle East Democracy Fund, assistance to non-governmental organizations and individuals from across the political spectrum working for political reform.

- Support for establishment of more NGOs, independent media outlets, polling organizations, think tanks, and business associations --- groups that create the foundation for a vibrant democracy.

- Programs that will increase the transparency of legal and regulatory systems and improve administration of the judicial process.

- Training for candidates for political office and for members of parliaments and other elected officials.

- Training and exchanges for electronic and print journalists.