The Peace Fund will invest in programmes that advance a two-state solution, help reduce division, strengthen civil society, and support dialogue and cooperation within and between Israeli and Palestinian communities, building the foundations for peace, a joint statement between the three governments say.
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The fund will seek to scale up and attract additional donors once operational.
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Fund announced ahead of meeting in Britain between UK foreign minister Yvette Cooper and her Australian and Canadian counterparts, Penny Wong and Anita Anand.
[Edit typo.]