/ 1 February 2006

Israel mulls decision on Palestinian funding

Israel will make a decision in the next few days on transferring funds owed to the Palestinian Authority, which were frozen after Hamas’s election win, Foreign Minister Tzipi Livni said on Wednesday.

”We will take a decision on these transfers of funds in the next few days. We want some time to reflect,” Livni told public radio shortly before setting off on a visit to Cairo, her first foreign trip since her recent appointment.

”It’s Israel’s right after all this drama to have a period of reflection in order to to determine if the conditions are right to transfer this money,” said Livni.

Israel currently pays back around $50-million every month to the Palestinian Authority as a reimbursement for customs duties levied on goods destined for Palestinian markets that transit through Israeli ports.

The latest payment was due on Wednesday but the Israeli government has said that it wants to screen all future funds to ensure that they do not get into the hands of ”terrorists”.

Major players in the international peace process, including the United States and European Union, have threatened to slash funding to the Palestinian Authority unless Hamas — behind dozens of suicide attacks on Israel — renounces violence and recognises the Jewish state’s right to exist.

However, they have also said the funding will continue at least until a new Hamas-led government is formed, likely to be several weeks if not months.

”The international community believes that until a new Palestinian government is formed, the transfer of money should continue as before,” said Livni.

”But we should be clear that the results of these elections will cast a shadow over our relations with the Palestinians,” she added.

”Israel thought that Hamas should not have participated in these elections, and the results are unacceptable.

”Palestinians have the right to elect who they want but their choice of terrorism will have a fallout not just with us but the entire world.”

Livni is expected to meet President Hosni Mubarak on her one-day visit to Cairo, the first meeting between an Israeli official and the veteran Egyptian leader since Israeli Prime Minister Ariel Sharon suffered a brain haemorrhage four weeks ago.

Mubarak and Sharon had come to work closely together, with Israel grateful for Egypt’s role as a mediator with the Palestinians.

Cairo hosted talks last March which led the Palestinian factions, including Hamas, to agree to a truce which officially expired at the end of the year. – AFP

 

AFP