| US gains support for aid cutoff to Hamas(AP)
 Updated: 2006-01-31 08:57
 
 A Palestinian government led by the Islamic militant movement Hamas must 
renounce violence and recognize Israel's right to exist if it is to receive 
badly needed overseas financial aid, U.S. and other international donors said 
Monday. 
 "I think we are all saying exactly the same thing, that there are choices now 
confronting Hamas and we will see what they do," said U.S. Secretary of State 
Condoleezza Rice. 
 U.N. Secretary-General Kofi Annan said the aid won't stop immediately, now 
that Hamas has won a decisive victory in Palestinian legislative elections. U.S. 
and European officials said it will probably take two to three months for a new 
Hamas government to form and take office, effectively giving Hamas a brief grace 
period in which to change its ways. 
 At stake for Hamas is roughly $1 billion a year that foreign donors give the 
Palestinian Authority, more than half its annual budget. 
 Future aid to a new Palestinian government led by the militant Islamic group 
"would be reviewed by donors against that government's commitment to renounce 
violence, recognition of Israel" and other agreements, Annan said. 
 He spoke after a hastily called strategy session of the so-called Quartet, 
the group of international would-be Middle East peacemakers that includes the 
United Nations, United States, Russia and the European Union. That group 
includes all major donors to the perpetually cash-strapped Palestinians. 
 "It is incumbent now for all to insist that any future Palestinian government 
will live up to these obligations," including acceptance of the goal of 
side-by-side homelands for Israelis and Palestinians, Rice said. 
 The Quartet issued a strongly worded statement that stopped just short of 
issuing an outright threat to the incoming Hamas leadership. Almost immediately, 
the Al-Arabiya satellite channel reported that Hamas rejected the demands to 
disarm and recognize Israel. 
 European governments have given far more money to the Palestinians than has 
the United States, which is Israel's strongest ally, and have often been more 
sympathetic to Palestinian arguments and complaints. 
 Although European officials previously have sounded less firm than the U.S. 
on an aid cutoff, European Union High Commissioner Javier Solana said Hamas does 
not have much time. 
 "Once these conditions are fulfilled, the European Union will stand ready to 
continue to support the Palestinian economic development and democratic 
stability, but it has to be compliant with all these conditions which are here," 
Solana said. 
 Hamas' surprise victory set the Islamic militant group up to run the next 
government in the Palestinian territories bordering Israel. But the wary 
international reaction to its victory raised questions about how the Palestinian 
Authority would finance its annual budget. 
 The Palestinian Authority is effectively broke, with a deficit this month in 
the tens of millions of dollars. In 2005, the first year the Palestinian 
Authority was headed by someone other than Yasser Arafat, overseas donors 
contributed about $1 billion of the authority's budget. The total budget is 
estimated at between $1.6 billion and $1.9 billion, with huge shortfalls every 
year. 
 U.S. direct aid is a small part of that — $70 million last year — but the 
United States and other donors also contribute large amounts of aid indirectly 
for humanitarian and development needs. U.S. officials from President Bush on 
down have said there will be no direct aid for a government that includes Hamas, 
and that other humanitarian assistance will come only on a case-by-case basis. 
 "The Hamas party has made it clear that they do not support the right of 
Israel to exist, and I have made it clear so long as that's their policy, that 
we will not support a Palestinian government made up of Hamas," Bush said in 
Washington. 
 Palestinian leader Mahmoud Abbas appealed for continued world support, as did 
a Hamas leader who said his movement had written to the Quartet asking for 
direct talks and offering assurances that international aid would not go to 
Palestinian militants. 
 "We call on you to transfer all aid to the Palestinian treasury," Ismail 
Haniyeh, a Hamas leader in Gaza, told a news conference. "We assure you that all 
the revenues will be spent on salaries, daily life and infrastructure." 
 Abbas, the U.S.-backed head of the defeated Fatah Party, remains as president 
but the extent of his power is not yet clear. International donors said they 
will follow through on aid pledges to what they called Abbas' caretaker 
government, until Hamas takes over. 
 Israel said it would stop the monthly transfer of $55 million in taxes and 
customs it collects from Palestinian workers and merchants to the Palestinian 
Authority if a Hamas government is installed. 
 Hamas also has said it would try to turn to the Arab and Muslim world for 
money if the U.S. and Europe cut back. 
 
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