5/12/06

Palestinians to get some interim aid

The United States says it will provide $10 million in new medical assistance to Palestinians. The $10 million in U.S. aid will come from money the United States took back from the Palestinians after Hamas, which the U.S. considers a terrorist organization, won in democratic Palestinian elections this year.

In all, the U.S. has canceled or suspended $411 million in aid out of concern the money could help the new Hamas-led Palestinian government.

The European Union's external affairs commissioner said the aid would likely be focused on "basic human needs," such as health and education, and it would be distributed directly to Palestinians, not through the Hamas-controlled Palestinian Authority.

"It is to provide assistance to the Palestinian people so that they do not suffer deprivation," Condoleezza Rice said.

The Washington Post reports that Hamas was able to raise some $70 million from Iran and Arab donors. But under U.S. pressure, banks refuse to transfer the funds, and the money remains stuck in an account in Egypt.

Compounding Hamas' woes, each month Israel cuts off about $55 million in monthly transfers of tax it collects for the Palestinians. This began last January.

Israel is considering freeing up for medical services for Palestinians roughly 19% of the money they have withheld from Palestine. They will however continue to withhold any funds that could be disbursed to pay the salaries of about 150,000 Palestinian civil servants and members of the security forces, who have not been paid for two months.

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