Palestinian Authority’s US assets are frozen. (Hat tip: mks.)

WASHINGTON — A Rhode Island lawyer trying to collect a $116 million terrorism judgment against the Palestinian Authority has obtained a court-ordered freeze on all its US-based assets, severely limiting most Palestinian economic and diplomatic activities in the United States at a critical moment for the fledgling government.

The frozen assets include US holdings in a $1.3 billion Palestinian investment fund meant to finance economic development as well as bank accounts used to pay Palestinian representatives in Washington, according to lawyers and court documents filed in Rhode Island, Washington, D.C., and New York. Also frozen are about $30 million in assets from the Palestinian Monetary Authority, the Palestinian equivalent of the US Federal Reserve.

Providence attorney David Strachman, who is representing the orphaned children of a couple killed in Israel by Palestinian militants, has also initiated a court action to seize and sell the Palestinian-owned building in New York that serves as the Palestine Liberation Organization observer mission to the United Nations.

The aggressive collection effort comes as the Palestinian Authority is struggling to create economic opportunity and set up a viable government. Now, Palestinian officials say, the unpaid claim in the Rhode Island court, resulting from a 2004 ruling, threatens to complicate their efforts to become a credible emerging state.

See this? It’s the world’s tiniest woman in a burqa, ululating just for them.