Olmert's cabinet OKs $100 mln transfer for Abbas

JERUSALEM, Dec 24 (Reuters) Israeli Prime Minister Ehud Olmert's cabinet today unanimously approved the transfer of 100 million dollar in Palestinian tax revenues to President Mahmoud Abbas's office, Israeli officials said.

Olmert had pledged the funds to Abbas at their first formal meeting held yesterday in Jerusalem.

''The cabinet has approved the transfer of 100 million dollar via Abbas's office,'' an official in Olmert's office said. Israeli media said the decision was unanimous.

Officials said the transfer may not take place for days or weeks, until Israel receives details of what humanitarian needs Abbas intends to use the funds for.

Israel is seeking assurances that the money will bypass the Hamas-led Palestinian government.

Olmert told ministers he had had a ''good meeting'' with Abbas, and that they had agreed to hold further talks and to ''launch a dialogue with the Palestinian Authority'' in a bid to resume peace talks stalled since 2000.

A Palestinian uprising erupted soon after the last talks collapsed and hopes of reviving them dimmed again when the Hamas Islamist movement rose to power in March.

Israel and Western countries have imposed a financial boycott on the Palestinians to press Hamas to drop its refusal to recognise Israel and renounce violence.

Israel had frozen nearly 500 million dollar in Palestinians tax revenues as a part of these sanctions.

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