U.S., EU Threaten Aid Cut Unless Hamas Accepts Israel
Jan. 31 (Bloomberg) -- The U.S., European Union, United Nations and Russia said Hamas officials must form a Palestinian government that accepts Israel's existence or risk a cutoff of international aid.
The diplomatic group, known as the Quartet, threatened late yesterday in London to review all aid should Hamas maintain its violent opposition and refusal to endorse peace efforts. The Quartet's statement set a deadline on demands that European leaders and President George W. Bush made after Hamas's surprise election victory.
``Once these conditions are fulfilled, the European Union will stand ready to continue supporting Palestinian economic development,'' EU High Representative Javier Solana said after conferring with U.S. Secretary of State Condoleezza Rice, UN Secretary-General Kofi Annan and Russian Foreign Minister Sergey Lavrov.
At stake is hundreds of millions of dollars to support the Palestinian administration and building projects. Europe is the biggest donor to the Palestinian Authority, spending 500 million euros ($604 million) in 2005 on utilities, food aid, social services and election support.
Hamas has threatened to tap Iran, now battling the EU and U.S. over its nuclear program, to replace any lost European money.
Gaza Building
A senior U.S. official said the Palestinian Authority needs about $100 million to function each month and relies mostly on donations. In jeopardy may also be a Group of Eight pledge in July to help raise $9 billion over three years to help the Palestinians develop the Gaza Strip, which Israel evacuated in August.
Rice said the U.S. and its partners would consider Palestinian humanitarian needs, signaling that aid would likely continue to flow to charities even if Hamas didn't change its positions. The UN said the 273 schools and 54 health care facilities it runs for Palestinians in the West Bank and Gaza almost certainly will keep operating. The U.S. pays a fifth of the operating budget for that effort.
Officials said there would be no cut in aid to the current Palestinian government led by Palestinian Authority President Mahmoud Abbas of the defeated Fatah party.
``There is a commitment here to try and live up to the obligations that were undertaken to the caretaker government'' overseen by Abbas, Rice said. Abbas said yesterday he intended to serve out the remaining three years of his term.
U.S. officials said forming a government could take two to three months, giving Hamas that time to answer the demands.
``We want to work with a government that is a partner in peace,'' Bush said in Washington yesterday. ``Get rid of your arms, disavow terrorism.''
Hamas Plea
Ismail Hania, who headed the Hamas election slate, urged the EU and other international donors yesterday to continue funding the Palestinian Authority once the group enters the government.
``We will adopt reform procedures leading to administrative and financial transparency,'' Hania said at his home in the Shati refugee camp. ``All Palestinian income from donors, taxes and customs will flow into the Finance Ministry.''
Rice sought consensus among partners on the aid question, and senior U.S. officials told reporters accompanying the secretary of state they were satisfied with the agreement reached on the money question.
``We are working into the same direction, with the same aspirations,'' said Ursula Plassnik, the foreign minister of Austria, which holds the rotating presidency of the EU.
Promoting Democracy
One senior U.S. official, reflecting on the Hamas victory, said the Bush administration still believed that promoting democracy was the best option throughout the region, even when the results are not ideal.
Along those lines, the Quartet congratulated the Palestinians on holding ``an electoral process that was free, fair and secure.''
``Those who have been elected by the Palestinian people have an obligation,'' Rice said after the meeting. ``And that obligation is to speak to the aspiration of the Palestinian people and for a peaceful life.''
Earlier yesterday, some European officials suggested that they would take a wait-and-see approach in deciding whether to cut aid to a Hamas-led government. A senior U.S. official said while there may have been differences in tone throughout the day, everyone was committed to the same set of principles and consequences.
Most U.S. aid to the Palestinians by contrast is funneled to humanitarian groups via the U.S. Agency for International Development. It has only twice given money directly to the PA, including last year when it sent $70 million to prop up the new president, Abbas, after the death of Yasser Arafat.
Different Approaches
The U.S. and EU have had different approaches to Hamas in the past, so their joint statement signaled a consensus that for a long time was hard to reach.
The U.S. classified Hamas as a terrorist organization in 1992; the EU only did so in 2003.
While a U.S. ban on contacts with Hamas went into effect with its designation as a terrorist organization, the EU for a decade longer tried to mediate between Hamas, Israel and the Palestinian Authority.
To contact the reporter on this story:
Janine Zacharia in London at
jzacharia@bloomberg.net.
Last Updated: January 30, 2006 21:38 EST
