Israel's government weighs freeing funds to Abbas

Jerusalem, June 24: Israeli Prime Minister Ehud Olmert sought cabinet approval today to transfer hundreds of millions of dollars to Mahmoud Abbas's emergency government, a step designed to undercut Hamas Islamists controlling Gaza.

The money, Palestinian tax revenues withheld by Israel since Hamas came to power in a 2006 election, is part of an initial package of benefits to bolster Abbas that Olmert is likely to present to the Fatah leader at a summit in Egypt tomorrow.

Officials said the Israeli cabinet, holding its weekly session, also would consider easing travel restrictions for Palestinians in the occupied West Bank, where Fatah holds sway.

Israel wants to isolate Hamas economically, diplomatically and militarily in the Gaza Strip, which the Islamist group seized control of more than a week ago, while allowing funds to flow to Abbas's emergency administration in the West Bank.

Israel plans to choke off all but humanitarian and basic supplies to Gaza, home to 1.5 million people. It is seeking assurances tax revenues do not reach Hamas, which has rejected Western demands to recognise Israel and renounce violence.

Israeli officials say that once a proper mechanism is in place, up to 400 million dollar in taxes that Israel has collected on behalf of the Palestinian Authority under interim peace deals would be transferred to the emergency government in stages.

The Palestinians estimate that Israel is withholding 700 million dollar in tax funds. Israel says some of the money has been frozen by court order.

Olmert's cabinet was widely expected to approve the transfers despite opposition from some right-wing members.

In talks with their Israeli counterparts, US officials have requested that Israel ease restrictions on Palestinian access to the Jordan Valley, as well as remove barriers, checkpoints and roadblocks near major Palestinian population centres, including Hebron, Bethlehem and Nablus.

Israeli defence officials have mainly objected to removing the roadblocks and checkpoints near Nablus, arguing they are needed to prevent militants from criss-crossing the West Bank and infiltrating Israel.

Palestinians say the checkpoints are collective punishment.

REUTERS

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