Israel agrees to free Palestinian tax for aid use

JERUSALEM, May 10 (Reuters) Israel is willing to free tax revenues collected for the Palestinian Authority on condition they go toward humanitarian causes and not the new Hamas-led government, Foreign Minister Tzipi Livni said today.

Livni told Israel's Channel Ten television that she made the offer to foreign peace mediators scrambling to prevent economic meltdown in the West Bank and Gaza Strip while maintaining diplomatic pressure on Hamas to accept peacemaking.

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