EGYPT WILL SUPPORT, FUND HAMAS

Egypt rebuffs Rice on denying Hamas aid.

CAIRO (Reuters) - Egypt rebuffed U.S. Secretary of State Condoleezza Rice’s appeal on Tuesday for Arab states to deny direct aid to Hamas when it forms a government.  In a news conference with lively exchanges Rice and Foreign Minister Ahmed Aboul Gheit also disagreed over Egypt’s imprisonment of a leading opposition figure.  Rice began a trip to friendly Arab states in Egypt, which has a strong influence over its Palestinian neighbors. She is lobbying for them to pressure Hamas by refusing to give financial assistance to a group Washington considers a terrorist organization. ...

Gheit agreed Hamas should accept the need for a settlement with Israel based on a two-state solution as the United States wants.  But he would not back the U.S. position on ending financial support, which Palestinians worry will leave their aid-dependent government in crisis even if humanitarian aid from the United States and others continues. “We should give Hamas time. I am sure that Hamas will develop, will evolve. We should not prejudge the issue,” Gheit said. Asked if this meant Egypt wanted Arab states to continue funding Hamas once it assumed power, he said, “It is premature to judge the issue right now.”