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Palestinians to Give Back US Aid    [

    Israeli Cabinet OKs Economic Sanctions
    By Amy Tiebel
    The Associated Press

    Sunday 19 February 2006

    Jerusalem - The Israeli Cabinet on Sunday approved a halt in monthly transfers of tens of millions of dollars to the Palestinians, in the first response to Hamas taking control of the Palestinian parliament.

    The decision came a day after a new Hamas-dominated Palestinian legislature was sworn into office. Israel had warned relations with the Palestinians would suffer the moment Hamas entered parliament. The group has killed hundreds of Israelis in suicide bombings and remains committed to Israel's destruction.

    On Sunday, Hamas nominated Gaza lawmaker Ismail Haniyeh to be Palestinian prime minister, a widely expected move announced in a text message sent to reporters. Haniyeh is seen as a leader of the militant group's pragmatic wing and has good working relations with the rival Fatah movement.

    Israel collects and transfers about $50 million in tax money for the Palestinians each month. The money is essential for the Palestinian Authority to meet its monthly payroll for about 140,000 workers.

    The Israeli ministers also urged the international community to withhold most aid to the Palestinian Authority, though it said humanitarian assistance should continue. But they stopped short of more drastic measures, including sealing off the Gaza Strip, favored by security officials.

    Acting Israeli Prime Minister Ehud Olmert ruled out all contact with Hamas, though he assured Israel had "no intention of hurting the humanitarian needs of the Palestinian people."

    "Given the Hamas majority in parliament ... the Palestinian Authority becomes in effect a terror authority," Olmert told the Cabinet. "Israel won't agree to that."

    Palestinian leader Mahmoud Abbas was expected later Sunday to formally give Haniyeh the task of putting together a new Cabinet. Haniyeh would then have three weeks to submit a government to Abbas for approval.

    Addressing the parliament on Saturday, Abbas said he expected Hamas to honor existing peace accords with Israel and halt violence. Hamas leaders rejected those calls, but signaled a willingness to compromise.

    Born in Gaza's Shati refugee camp, Haniyeh graduated from Gaza City's Islamic University in 1987 with a degree in Arabic literature and became a close associate of Hamas founder Sheik Ahmed Yassin.

    Haniyeh was expelled by Israel to south Lebanon in 1992, returned to Gaza a year later and became the dean of the Islamic University. In 1998, he took charge of Yassin's office.

    A pragmatist, he served as a liaison between Hamas and Palestinian Authority, established in 1994 and dominated by the rival Fatah movement.

    He rose to prominence after Israel's assassinations in 2004 of Yassin and Yassin's successor, Abdel Aziz Rantisi. He has been a member of the political leadership of Hamas since the 1990s.

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    Palestinians to Give Back US Aid
    By Jonathan Beale
    BBC News

    Saturday 18 Febuary 2006

    The Palestinian Authority has agreed to return $50m (£28.7m) of American aid following a request from Washington.

    The US State Department said that it did not want the money going to a Hamas-led government that refused to recognise Israel.

    The US has already said that it is reviewing all aid to the Palestinians in light of Hamas' election victory.

    As proof that it is serious, it has asked for $50m of aid to the Palestinian Authority to be returned.

    The money was to be spent on regenerating the Palestinian economy following Israel's withdrawal from Gaza.

    However, most of the $50m is still in the bank and the Palestinian Authority has agreed to return it.

    President Bush has already made clear that he will not deal with Hamas, which the US lists as a terrorist group, until it renounces violence and recognises Israel.

    However, the State Department says it will continue to work to meet the humanitarian needs of ordinary Palestinians.