RAMALLAH, July 14 (Xinhua) -- Palestinian President Mahmoud Abbas' Fatah party on Sunday called on the United Nations to cover the budget of the UN Relief and Works Agency for Palestine Refugees (UNRWA).

According to a statement published by the official Palestinian news Agency WAFA, the party's advisory council discussed the U.S. aid cut to the UNRWA at a regular session.

It also demanded the establishment of an independent Palestinian state with East Jerusalem as its capital, which is the basis for a just solution to the conflict.

Abbas said at the council's opening session that Palestine's relations with the U.S. government will not return to normal unless Washington recognizes the terms of reference of peace and UN resolutions.