Defying Bush, House backs limits on Palestinian aid

WASHINGTON, May 23 (Reuters) The U S House of Representatives today overwhelmingly backed legislation to impose broad restrictions on U S aid to the Hamas-led Palestinian Authority, defying President George W Bush in the midst of high-profile West Asia talks.

The House voted 361-37 for the bill that backers said was needed to keep any U S funds from supporting Hamas, a militant group pledged to the destruction of Israel and deemed a terrorist organisation by Washington.

The vote came during Israeli Prime Minister Ehud Olmert's first trip to Washington, where a topic was expected to be how to ease the Palestinians' humanitarian crisis while isolating the Hamas Islamists controlling the Palestinian government.

The Bush administration contends this bill would tie its hands in that effort. The administration has cut off direct aid to the Hamas-led government, but the bill would put into law more sweeping bans.

The House bill would cut off direct and indirect U S assistance to the Palestinian Authority, other than aid to meet ''the basic human health needs'' of the Palestinian people and for measures Congress approves on a case by case basis. It would limit aid through nongovernmental organisations and restrict diplomatic contacts with representatives of Hamas.

The bill calls for the Palestinian Authority to be designated a ''terrorist sanctuary,'' and bans visas for entry into the United States of any official or member of the PA or any component of the PA. It also recommends withholding U S contributions to the United Nations proportional to the amount the world body provides the PA.

Facing insurmountable bipartisan momentum in the House for the sanctions bill, congressional aides said the administration likely will try to block companion legislation in the Senate to keep the measure from going to a House-Senate conference and reaching Bush's desk.

The House bill is more restrictive than a Senate version that has not yet moved through committees. Under it, aid would be restored if Hamas recognizes Israel's right to exist, renounces terrorism and disarms.

The militant group took power in March after winning January parliamentary elections. Tensions have surged between Fatah, the long-dominant Palestinian faction, and Hamas, and skirmishes have given rise to fears of mounting violence among rival Palestinian factions.

Rep Earl Blumenauer, an Oregon Democrat who led a small charge against the bill in nearly three hours of debate yesterday, said it was too punitive on Palestinian and ''onerous and burdensome'' on the administration's diplomatic efforts.

''I am afraid that this legislation may well backfire by actually strengthening the hands of extremists,'' he said.

But Rep Tom Lantos of California, top International Relations Committee Democrat and the bill's co-sponsor, said instead of punishing Palestinians, the bill was ''carefully crafted and aimed at Hamas.'' ''The United States must make it unambiguously clear that we will not support a terrorist regime,'' said Rep Ileana Ros-Lehtinen, a Florida Republican.

Reuters SI DB2232