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Israel releases tax money to Palestinians
By ASSOCIATED PRESS
Published January 19, 2007
JERUSALEM - Israel said Thursday it would free $100-million in frozen tax funds to boost moderate Palestinian President Mahmoud Abbas - the first Israeli payment since the militant Hamas group won Palestinian legislative elections last year. The move comes two days before Abbas heads to Syria for talks with the top Hamas leader to forge a unity government aimed at ending a punishing international aid boycott. The talks have sputtered for months amid deadly clashes between forces loyal to the two sides. The $100-million is part of the tax money Israel collects for the Palestinian Authority. Israel halted transfer of the funds when Hamas won control of the parliament and set up its Cabinet in March. Israel said it could not feed money to a Hamas-led government, labeling Hamas a terrorist group. The United States and European Union joined in the boycott, halting the foreign aid that has kept the Palestinian Authority afloat since it was created in 1994. The funding freeze has caused widespread hardships.
[Last modified January 19, 2007, 00:56:07]
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