The  U.S. could withdraw funding from the United Nations if its members  decide to recognize an independent Palestinian state, a close ally of  President Barack Obama has warned.
Susan Rice, the American  ambassador to the UN, said there was "no greater threat" to U.S.  support and funding of the UN than the prospect of Palestinian statehood  being endorsed by member states.
Mahmoud Abbas, the  president of the Palestinian Authority, plans to ask the UN General  Assembly, which comprises all 192 members, to vote on recognition at its  annual meeting in New York in September.
The U.S. and  Israel are pressing Mr Abbas to drop his plans. Mr Obama has strongly  opposed the move, raising the prospect of a veto in the UN Security  Council, which is expected to vote on a Palestinian statehood proposal  in July.
But Palestinian officials have spoken of their  determination to circumvent a U.S. veto by deploying a rarely used Cold  War mechanism known as "Uniting for Peace" under which a two thirds  majority in the General Assembly can override the Security Council.
Although  Palestinians believe they are close to securing such a majority, the  General Assembly does not have the power to confer UN membership on a  new Palestinian state, meaning that a successful vote would represent  little more than a symbolic triumph.
Even so, Republicans  in the U.S. Congress are promising to react aggressively to any approval  of statehood. Two congressmen have already vowed to initiate bills to  withdraw UN funding in the House of Representatives.
Such a  development could be devastating to the UN. The U.S. provides almost a  quarter of its $2.5 billion annual budget. Speaking in Washington, Miss  Rice said the Obama administration was devoting "extraordinary efforts  and energy" to restarting Middle Eastern peace talks so a vote in  September could be avoided.
On the prospect of it being  approved, she said: "This would be exceedingly politically damaging in  our domestic context, as you can well imagine. And I cannot frankly  think of a greater threat to our ability to maintain financial and  political support for the United Nations in Congress than such an  outcome."
A video of Miss Rice making the comments has been  taken off the Internet. Her spokesman said: "These were informal  remarks in a domestic setting."
The U.S. is desperate to  avoid being put into a position of having to wield its veto. With  growing international support for Palestinian statehood, even in Europe,  the U.S. is looking increasingly isolated in its support for Israel and  a veto would badly damage Mr Obama's credentials in a rapidly changing  Middle East.
But the President faces a politically damaging  backlash from the pro-Israeli lobby and its many supporters in Congress  if he does not block a resolution, a move that could also cost  all-important Jewish votes in key swing states during next year's  presidential election.
Britain has indicated that it would  not join the U.S. in vetoing Palestinian statehood in the Security  Council. But David Cameron is also hoping to avert a highly divisive  vote in the General Assembly.
"The question is whether we  can do anything that might deflect the Palestinians from going ahead  with this," a British diplomatic source said.
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