Palestinian UN aid still $200 mln short after Trump cuts

Trump withheld the aid to UNRWA in January after questioning the value of such funding, while the U.S. State Department said the agency needed to make unspecified reforms.

Many Western diplomats saw Trump's decision as a reaction to the condemnation across the Middle East of his Dec. 6 decision to recognise Jerusalem as Israel's capital and before any peace settlement between Israelis and Palestinians. The United Nations also voted to reject that recognition.

Kraehenbuehl, a Swiss national, said he had enacted spending cuts to contain costs within the agency and was trying to find new donors in the private sector. Those could be in Gulf countries, or donations made in solidarity with the Palestinians during the Muslim holy month of Ramadan.

Kraehenbuehl said that after donors such as Qatar, Turkey and the United Arab Emirates had come forward, he would now seek help from Germany, France, Sweden and Britain, travelling to Berlin later this week. Israel is not a contributor to UNRWA.

"It's a modest investment to preserving the region from future instability and uncertainty," he said.