Palestinians must prepare for the likelihood economic sanctions will be imposed on them once the U.N. upgrades the Palestinian Authority's status, Saeb Erekat said. The Palestinian negotiator said Thursday he expects Washington and Jerusalem to take a number of retaliatory measures against the Palestinian Authority, once its status is upgraded at the United Nations in November as a non-member state, The Jerusalem Post said. "It's very important to be prepared for Israeli reactions to the upgrading of the Palestinian state's status so as to avoid a state of internal chaos [in the Palestinian territories]," the Post quoted Erekat saying in a report concerning the implications of the statehood bid. "Palestinian institutions must be prepared for a state of emergency to limit, as much as possible, the negative impact of the anticipated step." Erekat said he expects the U.S. Congress and the administration to freeze financial aid, and suspend funds to U.N agencies operating in Palestinian areas, and possibly exert pressure on countries abroad to refrain from supporting the Palestinian's statehood bid. Erekat said he would not be surprised if Israel unilaterally withdraws from some West Bank areas, freezes tax revenues and even walks away from the Oslo Accords signed with the Palestinian Liberation Organization in 1993.
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