U.N.: Transfer funds to PA

United Nations objects to Israel's economic sanctions against Palestinian Authority; U.N. envoy meets with government coordinator in territories, tells him Israeli move contradicts decision made by Quartet

Hanan Greenberg|Last update: 02.20.06 , 00:16

U.N. objects to Israeli moves: Israel's decision to curb fund transfers to the Palestinians in the wake of the swearing-in of a Hamas-led parliament has been slammed by the United Nations, with U.N. Envoy Alvaro de Soto charging the move contradicts a Quartet decision on the matter.

De Soto expressed the U.N.'s objection to Israel's punitive measures during a meeting Sunday evening with government coordinator in the territories, Major General Yosef Mishlav.

Palestinian Authority

Abbas: PA faces grave economic crisis

Ali Waked

Abbas: PA faces grave economic crisis Palestinian leader arrives in Gaza for talks with Hamas' new PLC chairman, warns of an impending financial crisis due to American, Israeli freeze on money transfers to the PA; despite crisis, Abbas assures he won't give in to pressures and Israel's 'attempts to sidestep Palestinian voters' choice'

Abbas: PA faces grave economic crisis

Mishlev met with representatives of international organizations at the Defense Ministry headquarters in Tel Aviv in order to explain to them Israel's policy vis-a-vis the Palestinian Authority. He noted that until a Hamas-led government is formed, Israel does not intend to curb fund transfers from international groups to the PA.

However, once a Hamas-led government is formed, Israel would not be assisting in any fund transfer but will maintain humanitarian aid to the Palestinians. Last week, Defense Minister Shaul Mofaz appointed Mishlav to head a team that would recommend sanctions and limitations to be placed on the PA.

Israel has already announced the implementation of an "economic siege" on the Palestinians, but the U.S. and Europe are still waiting for a new PA government to be established before making a final decision on the matter.

For the time being, fund transfers to the Palestinians continue.

Abbas, Hamas leaders to meet

Meanwhile, U.S. Secretary of State Condoleezza Rice is set to head Monday on a tour of Arab states. Before departing, Rice told reporters the Palestinian Authority requires up to USD 1.9 billion per year.

Rice also addressed Hamas' plan to raise funds in Iran, musing whether the group will be able to acquire such huge sums from Tehran. The secretary of state also noted Iran is clearly not committed to the peace process.

Iran should think twice whether it wishes to get into more trouble with the international community, Rice warned.

Regarding American aid to the PA, Rice said the U.S. has made it clear it would not allow funds to be transferred to a terror organization, but added the Americans are aware of the Palestinian people's humanitarian needs.

Elsewhere, PA leader Mahmoud Abbas is set to initiate Monday morning contacts aimed at establishing a Hamas-led government headed by Ismail Haniyeh. In a meeting between Abbas and Hamas leaders in Gaza, the parties will make an effort to formulate basic guidelines for the new Palestinian government.

Should the sides be able to strike an agreement, Abbas will officially announce he is tasking Hamas with forming the new government.

Earlier, Haniyeh declared a Hamas government will be open to the world and slammed Israeli sanctions announced in the wake of the Islamic group's elections win and the swearing-in of the new Palestinian parliament over the weekend.