Egyptian President Hosni Mubarak warned on Monday that without necessary humanitarian and financial aid in the Palestinian territories, violence and terrorism will spread.
"The aid is used by the man-in-the-street to buy medicine and to send his children to school. If this money is cut, terrorism will grow and all the (Palestinian) people will suffer," Mubarak stated, according to the AFP.
The statement was made in Vienna during a meeting between the Egyptian leader and Austrian President Heinz Fischer, who currently heads the European Union.
Palestinian leader denies that funds from Iran will encourage terror
Meanwhile, Islamic Jihad leader Mahmoud Al Saadi stressed during a radio interview with the Israeli-Palestinian radio station "Voice of Peace," that funding provided by Iran to the Palestinian Authority would not be used to fund attacks against Israelis, said Ynet.
"We will resume activities against Israel when the time is right," Saadi said.
"Our military wing shall decide when that time comes. Islamic Jihad has lost many of its members, and this will not go by without a response," he added, referring to recent assassinations of Islamic Jihad leaders by Israel.
Iran has offered to transfer much needed funding to the Palestinians in the wake of a decision on the part of Israel and several western regimes to withhold financial support from following the rise to power of the Hamas party, which they consider a terrorist organization.
Three conditions, including renouncing violence, respecting previous peace agreements signed between the PA and Israel, and recognizing Israel's right to exist, were set as conditions to reinstating financial support.
Iran's offer to help has concerned some in the west that due to Iran's anti-Israel stand, the money would be used to fund attacks against Israelis.