Friday, April 7, 2006

US, EU FREEZE AID TO PALESTINIANS

WASHINGTON (Reuters) - The United States has decided to suspend direct assistance to the Hamas-led Palestinian government, while increasing humanitarian aid to the Palestinians through U.N. agencies, the State Department said on Friday. "Because the new Hamas-led Palestinian government has failed to accept the Quartet principles of non-violence, recognition of Israel, and respect for previous agreements between the parties, the United States is suspending assistance to the Palestinian government's cabinet and ministries," said State Department spokesman Sean McCormack. Quoting a statement by Secretary of State Condoleezza Rice, he said the suspension would be lifted if the Palestinian Cabinet met the terms laid out by the Quartet -- the United Nations, the United States, the European Union and Russia.

EU freezes aid to Palestinian government.

BRUSSELS (Reuters) - The European Commission said on Friday it had halted aid payments to the Hamas-led Palestinian government because the new cabinet had not recognized Israel’s right to exist or renounced violence. Palestinian Foreign Minister Mahmoud al-Zahar, whose government took office last week, warned the EU in response that cutting aid would harm its credibility and may lead to boycotts of European interests in the Islamic world. “For the time being, there are no payments to or through the Palestinian Authority,” Commission spokeswoman Emma Udwin said. She told a news briefing the European Union executive was adopting “a policy of maximum prudence,” which did not prejudge decisions by foreign ministers of the 25-nation bloc when they meet in Luxembourg next Monday.

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