Rice: We underestimated Hamas

U.S. Secretary of State Rice admits administration failed to predict Palestinian elections' outcome; 'everyone was caught off guard,' she adds. Rice states U.S. won't fund Hamas-led government
Yitzhak Benhorin

WASHINGTON - First sanctions: United States Secretary of States Condoleezza Rice on Sunday ruled out any American financial aid to a Hamas government in the Palestinian territories and said Washington wants Arab nations and others to cut off money as well.

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The top U.S. diplomat spoke to reporters as she flew to London for a Mideast strategy session with European and Russian leaders and United Nations Secretary-General Kofi Annan.

"The United States is not prepared to fund an organization that advocates the destruction of Israel, that advocates violence and that refuses its obligations," under an international framework for eventual Mideast peace, Rice said.

Referring to Hamas' unexpected victory in the elections, which caught both Israel and the U.S. by surprise, Rice admitted the U.S. has failed to comprehend the depth of Palestinian hostility toward their leadership.

"I've asked why nobody saw it coming," Rice said, speaking of her own staff. "It does say something about us not having a good enough pulse," the New York Times quoted Rice as saying Sunday.

"I don't know anyone who wasn't caught off guard by Hamas' strong showing," Rice added. "Some say that Hamas itself was caught off guard by its strong showing."

Israel, EU to suspend PA funding

Meanwhile, Israel is also expected to suspend the transfer of funds to the Palestinian Authority. Acting Prime Minister Ehud Olmert said Sunday in his meeting with German Chancellor Angela Merkel, Israel will in no way funnel money that may be used to fund terror.

Merkel on her part stated the European Union would not be able to fund the Palestinian Authority under Hamas if it does not renounce violence and recognize Israel. "Such a Palestinian Authority cannot be directly supported by money from the EU," Merkel said.

Notably, on Wednesday Israel is scheduled to channel NIS 200 million to the PA. At present, it remains unclear whether the money will be transferred.

Associated Press contributed to the report