THE PEACE INITIATIVE OF KING ABDULLAH BIN ABDUL-AZIZ AIMS AT DRAWING THE ATTENTION OF ISRAEL TO THE IMPORTANCE OF REVISION OF ITS POLICY AND WORKING FOR PEACE THROUGH WITHDRAWAL FROM ALL OCCUPIED ARAB TERRITORIES INCLUDING SYRIAN GOLAN HEIGHTS AND THE REMAINING TERRITORIES IN SOUTH LEBANON IN ADDITION TO REACHING A JUST SOLUTION TO THE PROBLEM OF THE PALESTINIAN REFUGEES IN LINE WITH THE RESOLUTION OF THE UN'S GENERAL ASSEMBLY NUMBER 194 AS WELL AS THE ACCEPTANCE OF THE ESTABLISHMENT OF AN INDEPENDENT PALESTINIAN STATE WITH AL-QUDS AS ITS CAPITAL. IN HIS SPEECH AT THE ARAB SUMMIT HELD IN BEIRUT IN 2002, KING ABDULLAH SAID 'WHEN THE ARABS DECIDED TO ACCEPT PEACE AS A STRATEGIC OPTION, THEY DID NOT DO THAT BECAUSE THEY WERE WEAK' AND ADDED 'ISRAEL WILL COMMIT A GROSS MISTAKE IF IT THINKS THAT IT CAN IMPOSE AN UNJUST PEACE ON THE ARABS BY FORCE. MOREOVER, WE HAVE ENTERED THE PEACE PROCESS WITH OPEN EYES AND ALERT MINDS, AND WE WILL NEVER ACCEPT TO TURN THIS PROCESS INTO AN UNCONDITIONAL COMMITMENT IMPOSED BY A PARTY ON THE OTHER PARTY'. AT THE ARAB SUMMIT HELD IN CAIRO IN 2000, KING ABDULLAH BIN ABDUL-AZIZ PROPOSED THE ESTABLISHMENT OF A FUND UNDER THE NAME OF AL-QUDS INTIFADA (UPRISING) WITH A CAPITAL OF $200 MILLION FOR THE FAMILIES OF THE PALESTINIAN MARTYRS, IN ADDITION TO THE ESTABLISHMENT OF ANOTHER FUND UNDER THE NAME OF AL-AQSA FUND WITH $800 MILLION FOR FINANCING THE PROJECTS THAT CONTRIBUTE TO THE PRESERVATION OF THE ARAB AND ISLAMIC ENTITY OF AL-QUDS. AT THAT TIME, THE KING ANNOUNCED THE COMMITMENT OF SAUDI ARABIA TO PAY 25 PERCENT OF THE SUM ALLOCATED FOR THE TWO FUNDS. IN JULY 2006, HE ISSUED HIS DIRECTIVES TO ALLOCATE $250 MILLION FOR THE PALESTINIAN PEOPLE.--MORE www.spa.gov.sa/435925