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Mahmoud Abbas Photo: AP
 
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Civil servants demonstrating Photo: AFP
 

 

Sources: Israel may release tax funds to Abbas

Western diplomats say Israel considering handing over millions of dollars in frozen tax funds in bid to bolster Palestinian president prior to possible PA elections

Ali Waked and Reuters
Published: 12.20.06, 18:00 / Israel News

A senior Palestinian source told Ynet Wednesday that significant progress has been made in the talks regarding Israel's transfer of millions of dollars in withheld Palestinian tax funds to President Mahmoud Abbas.

 

The move could bolster him in the run-up to elections over his Hamas rivals, the source said.

 

Western diplomats and Palestinian sources, who spoke on condition of anonymity, said the proposal under consideration calls for releasing the tax money to Abbas in stages with assurances that it will bypass the Hamas-led government.

 

That could allow the moderate president to make payments to Palestinian civil servants, who have not received their full salaries since Hamas came to power in March.

 

'I see no reason not to meet'

Sources in Prime Minister Ehud Olmert’s office said Israel is in fact willing to transfer the funds on condition they bypass Hamas.

 

Abbas said during his speech last Saturday that he ‘promises to pat the civil servants’ salaries very soon.’

 

Earlier on Wednesday Olmert expressed his readiness to meet with Abbas as soon as possible.

 

"I hear that Abu Mazen (Abbas) will be happy to hold a meeting with me. If it is possible to make him and myself happy, I see no reason

not to do so, and I hope this will happen very soon," he said.

During a meeting with British Prime Minister Tony Blair on Monday Olmert said, ‘Diplomatic action in needed to bring about a two-state solution.’

 

“Peace and stability will be reached only when a peace agreement is reached,” he said. The prime minister also asked that Blair work toward lifting the economic siege imposed on the PA.

 

Ronny Sofer contributed to the report

 

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