U.S. Transfers $200 Million in Aid to Palestinian Authority, Clinton Says

The United States has transferred $200 million in aid for the Palestinian people, Secretary of State Hillary Clinton said Friday.

The money was part of the assistance package announced at an international donors conference in March.

Clinton, who spoke after returning from a visit to India and Thailand, said the money had been transferred directly to the Palestinian Authority.

She said that she had been assured that President Mahmoud Abbas and Prime Minister Salam Fayyad "have put in place the foundations of a responsible, transparent, accountable government."

This had been verified, she said, by the World Bank, International Monetary Fund and internal reviews.

Speaking to reporters via video conference from the Palestinian territories, Fayyad said the transfer was a "huge vote of confidence" which his government appreciates.

"In this case, our sense of gratitude is matched, if not even surpassed, by immense pride in what we have accomplished worthy of the confidence of our people," he said.

Clinton said the United States would continue to engage Israel and the Palestinians in peace talks and press for a two-state solution, and called on the rest of the world to help boost the Palestinian economy.

"Human progress depends on the human spirit. ... These fiscal reforms serve a larger purpose. We are seeing the positive impact that responsible government is having on the lives of Palestinians in the West Bank -- daily improvements in security, law and order, and economic opportunity," she said.

FOX News' Nina Donaghy contributed to this report.