The United States yesterday urged Israel to release millions of dollars in taxes due to the Palestinian Authority, ignoring an Israeli demand that violence must first come to an end. The U.N. representative to the Palestinian Authority, Terje Roed-Larsen, made the same appeal and said it would be very difficult to stop the violence as long as Israel restricts economic activity in Gaza and the West Bank. He said that the Palestinian Authority is on the verge of collapse because it will not have the money to pay civil servants and its security forces. Roed-Larsen explained that the Israelis were holding $54 million in tax funds they collect from Palestinians and on Palestinian-made products. The economy has declined sharply since violence broke out last September, because Israel prevents Palestinians from commuting to their jobs in Israel. Roed-Larsen said the closure policy, which is the main cause of misery in Gaza and the West Bank, is “colossally counterproductive” to any security interests, including, and most particularly, Israeli security interests.