(Adds comments by ICRC president) By Stephanie Nebehay GENEVA, Dec 7 (Reuters) - The International Committee of the Red Cross (ICRC) said on Thursday it was boosting aid to growing numbers of "destitute families" in Iraq and the Palestinian territories, but cutting its budget for Sudan. The humanitarian agency appealed for 1 billion Swiss francs ($836.8 million) to fund its programmes in 80 hotspots worldwide in 2007. Forty percent of the money is earmarked for Africa. Governments have provided around 80 percent of ICRC funding in previous years, with the United States, Britain and Switzerland the main donors. Sudan remains its largest operation but spending will fall 43 percent to 73.1 million Swiss francs as more of those it had been aiding in the conflict-ridden Darfur region are considered able to grow crops to feed themselves. A total of 71 million Swiss francs will be earmarked to help families in Israel and the Palestinian territories suffering from the "further degradation of the economic situation". Iraq, its next largest operation, will get 18 million Swiss francs to help more families uprooted by the violence and also repair vital water and sanitation systems. ICRC President Jackob Kellenberger said that insecurity prevented the neutral agency from taking on a larger role in providing protection and assistance to civilians there. The humanitarian situation was worsening in Iraq, Kellenberger told a news conference. "There is an increasing number of totally destitute families who need basic economic support ... and there are enormous medical needs," he said. "But the time is not yet there where we could increase our expatriate staff to do direct assistance to victims on a larger-scale," he added. The ICRC is also visiting 14,000 detainees in Iraq, mainly held by U.S. and British forces. Kellenberger reiterated the agency hoped to reach an accord with Iraqi authorities to be able to visit prisoners at all Iraq-run detention centres. In Darfur, the ICRC is currently feeding 300,000 people -- only around a tenth of those deemed in need -- in remote areas of Sudan's troubled western region, but this group is now considered largely self-sufficient in food. The lower budget for Darfur reflects a shift from large-scale food distribution to activities such as distribution of seeds and farm tools to generate income, Kellenberger said. "The decrease is not due to a lower commitment, it is due to a shift of policy," he said. "We want to increase our efforts so that they can depend on themselves and depend less on the direct supply of large quantities of food." Experts say around 200,000 people have been killed in Darfur since rebel groups took up arms in 2003 against the Khartoum government, charging it with neglect.
