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Israel stops funds to Palestinians

Sunday, February 19, 2006


Other countries are being persuaded to cut off funding.
KNIGHT RIDDER NEWSPAPERS
JERUSALEM -- One day after the Islamist militant group Hamas took control of the Palestinian parliament, Israel's acting prime minister dubbed the new government a "terrorist authority" on Sunday and immediately cut off funds needed to keep the Palestinian Authority afloat.
Israel stepped up its efforts to isolate the incoming government now that it is run by Hamas, which introduced suicide bombings to the Israeli-Palestinian conflict and refuses to accept Israel's right to exist.
"Israel views the rise of Hamas as a dangerous milestone that turns the PA into a terrorist authority," acting Israeli Prime Minister Ehud Olmert said before his Cabinet approved the new steps.
The combative steps underscore the calculated risk Israel is taking in response to the Hamas victory: Israel's efforts to isolate the new Palestinian government could either force Hamas to moderate its views or drive it toward further extremism and deepen the economic despair of the Palestinian people.
Olmert said Israel would sever military and political ties to the Palestinian Authority until Hamas accepts Israel's right to live alongside a new Palestinian state, disarms its militants, renounces terrorism and accepts existing peace deals.
Money
In the most significant punitive measure, Israel will stop funneling about $50 million in monthly customs and tax revenue that it collects for the Palestinian Authority and passes along to it.
The money is essential to paying the salaries of 138,000 Palestinian government employees, including 58,000 members of the security forces who could be thrown out of work.
Palestinian Authority President Mahmoud Abbas, the moderate leader undercut by the Hamas victory, told reporters in Gaza City that the Israeli moves were deepening his government's financial crisis.
Israel also is trying to persuade other countries to cut off funding to the Palestinian Authority. The United States has demanded that the Palestinian government return $50 million in aid it gave last year, and it's unlikely to hand over any more money unless Hamas agrees to the changes sought by Israel and much of the rest of the world.
After Israel's actions, a top Hamas leader, Khaled Mashaal, headed from Syria to Iran to seek financial support from a government whose president has called for Israel to be wiped off the map.
"Under the Israeli threats, the Palestinian government and the Palestinian people have the right to look for finances for this government from whomever -- and no one has the right to oppose that," said Said Sayyam, one of the new Hamas lawmakers from Gaza.
Hamas last month won 74 of 132 seats in the new Palestinian Legislative Council, putting it in position to create a new Cabinet, which is charged with overseeing everything from the economy and security to education and foreign relations.
Abbas met Sunday with Hamas leaders at his Ramallah compound to begin the three-week process of choosing the Cabinet. As expected, Hamas tapped Gaza City lawmaker Ismail Haniyeh to be the next prime minister.