Washington cuts direct aid to Palestinians

WASHINGTON - The United States said it would freeze all direct aid to the Hamas-led Palestinian government but step up humanitarian assistance to Palestinians and funding to promote moderate ‘alternatives’ to the radical group.

Secretary of State Condoleezza Rice said in a statement that ‘the United States is suspending assistance to the Palestinian government's cabinet and ministries’ since the new Hamas administration refused to accept ‘principles of non-violence, recognition of Israel and respect for previous agreements.’

She said the government of Hamas, which catapulted to power in January parliamentary elections, ‘must take responsibility for the consequences of its policies.’

Washington had put funding to the Palestinian government under review after the elections but decided Friday to freeze the aid.

The move came just after the European Union suspended all direct aid to the Palestinian Authority, with the group's foreign ministers scheduled to meet on Monday to further discuss the issue.

Both the United States and EU regard Hamas as a ‘terrorist’ organisation.

US officials on Friday asked other governments to follow suit to pressure Hamas to return to the road map for Middle East peace, which calls for the creation of a Palestinian state that can co-exist with Israel.

The road map is backed by the ‘Quartet’ that includes the United States, Russia, the United Nations and the European Union.

US officials said more than 400 million dollars of planned direct assistance, including for key infrastructure projects, for the government would be suspended, cancelled or put under review.

Some of the money would be channeled to humanitarian aid, including food, education and health.

Basic humanitarian assistance will increase by 57 percent from 153 million dollars before the elections to more than 240 million dollars, said David Welch, Assistant Secretary of State for Near Eastern and North African Affairs.

A substantial portion of the money would be provided through the UN Relief and Work Agency (UNRWA), which would receive a 30 percent increase to 130 million dollars, he said.

Washington also announced increased funding from 29 million dollars to 42 million dollars to pro-democracy groups to ‘promote moderation and democratic alternatives to Hamas’.

‘Fifty-five percent of those who voted in this last election did not vote for Hamas, so they're out there searching for other vehicles and alternatives to express their political wishes,’ Welch said.

‘We think to continue to build the institutions of democracy is a very important endeavor and to give them some hope that their voice can be heard, particularly when we believe that Hamas as a government is going to have great difficulty meeting the aspirations of the Palestinian people,’ he added.

Although it supported Palestinian President Mahmoud Abbas, the United States said it had no immediate plans to provide funding to his office or other government institutions ‘independent’ of Hamas control.

‘Not now. But I don't rule it out. I don't rule it in,’ Welch said. ‘We support the president. We'll continue our relationship with President Abbas and that includes meeting him.’

The Fatah party of Abbas is a political rival of Hamas. Despite the victory of the ‘militant’ group in parliamentary elections, Abbas retains wide-ranging powers, including being head of the National Security Council, which has the final say over the Palestinian security forces.

Hamas took formal control of the government last week, after being sworn in by Abbas.