Palestinians reject US-Bahrain peace plan as Israel advises 'surrender'

The Palestinians on Monday vowed to reject a US-led peace initiative to be presented in Bahrain that dangles the prospect of $50 billion as an Israeli envoy bluntly told them they should "surrender".

Finance chiefs from the United States, oil-rich Arab states and international development institutions were flying to the tiny kingdom, which in a rarity is openly welcoming Israelis, who have forged an indirect alliance with Gulf rulers due to mutual hostility with Iran.

Led by President Donald Trump's son-in-law and adviser Jared Kushner, the Peace to Prosperity economic workshop that begins Tuesday evening is billed as the start of a new approach that will later include political solutions to the long intractable Middle East conflict.

It proposes raising more than $50 billion in fresh investment for the Palestinians and their Arab neighbours with major projects to boost infrastructure, education, tourism and cross-border trade.

The Palestinian Authority is boycotting the workshop, ...