Israel to give money to emergency government

Updated 11.47 Sun Jun 24 2007
Keywords: Hamas, Gaza, Palestine, Israel, Middle East, world, Ehud Olmert, Mahmoud Abbas

Israel has agreed to transfer millions of dollars to Palestinian President Mahmoud Abbas's emergency government.

In a measure designed to undercut the Hamas Islamists controlling Gaza, Israel has decided on a package of benefits to bolster Abbas.

"We will attempt in a sober and cautious manner to take advantage of the opportunities" - Ehud Olmert

Israel wants to isolate Hamas economically, diplomatically and militarily in the Gaza Strip while allowing funds to flow to the emergency administration in the West Bank.

An Israeli government official said Prime Minister Ehud Olmert's cabinet has approved the transfer of about $350 million (£175 million), short of the $700 million (£350 million) Mr Abbas wanted.

The money will be provided in instalments when a mechanism has been put in place to prevent funds reaching Hamas in Gaza.

Mr Olmert said: "We will attempt in a sober and cautious manner to take advantage of the opportunities created as a result of the recent events in the Gaza Strip, in order to build a diplomatic process with the Palestinians."

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