Officials in Saudi Arabia say that a national organisation has donated one and a quarter million dollars to the Palestine Liberation Organization.

Saudi television reported that the gift was made by the Saudi Popular Committee for Helping Palestine's Mujahidin.

It did not say what the money would be used for.

Correspondents say it has taken several years for Saudi/Palestinian relations to recover from the strains of the early nineties when Saudi Arabia withdrew funding from the PLO after it backed the Iraqi invasion of Kuwait.