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After Trump announced last month that he was recognizing Jerusalem as the capital of Israel and planned to move the USA embassy there, Palestinian Authority President Mahmoud Abbas said that the ceremony "represents a declaration that the United States has withdrawn from playing the role it has played in the past decades in sponsoring the peace process".

As one of the authority's largest doners, Trump could inflict "great pain" on the Palestinians, says The Washington Post.

Palestinians have said that these tweets prove how the United States can not be a neutral party in any form of peace talks.

Haley stressed that the United States was seeking to revive the peace process.

The president's threat comes almost one month after Trump officially recognized Jerusalem as the capital of Israel and said he would begin plans to move the U.S. Embassy from Tel Aviv to the city.

"The Palestinians now have to show their will that they want to come to the table".

"President Trump has sabotaged our search for peace, freedom and justice".

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Palestinian official Hanan Ashrawi responded with a statement Wednesday.

US President Donald Trump speaks with reporters as he arrives for a New Year's Eve gala at his Mar-a-Lago resort, December 31, 2017, in Palm Beach, Fla. "W$3 ith the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?" We're not giving the aid.

The office of Palestine's President Mahmoud Abbas rejected what the Palestinians called Trump's "blackmail" attempt, saying "Jerusalem is not for sale, neither for gold nor silver". But Palestinian intransigence was now preventing any progress on peace talks, he said.

As an example, we pay the Palestinians HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect.

According to the monthly "Peace Index" by the Israel Democracy Institute (full results here), 65 percent of Jewish Israelis believed that Trump's declaration last month was in Israel's best interests, as opposed to 23 percent who believed the move damaged them. Instead, most money goes to the United Nations, refugee or aid agencies and even Israel to pay for roads, welfare, schools, security and other Palestinian projects.

Trump has, in the past, voiced support in principle for legislation that would substantially cut USA aid to the PA if it continues its practice of paying the families of terrorists who kill Israelis.