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Thursday, March 02, 2006

Palestinians give back $30 million in US aid

02 Mar 2006 22:07:37 GMT
Source: Reuters

By Sue Pleming

WASHINGTON, March 2 (Reuters) - The Palestinian Authority has refunded $30 million in U.S. aid, meeting Washington's demand to keep it out of the hands of a new government being formed by Hamas, a militant group on the U.S. terrorist list.

David Welch, assistant secretary of state for Near Eastern Affairs, told lawmakers on Thursday the money was returned a day earlier and the Palestinian Authority had promised to give back a further $20 million before Hamas Islamists took over.

"There should be by the time this interim caretaker government leaves office, no U.S. taxpayer dollars in their (Hamas') hands," Welch told the U.S. House of Representatives International Relations Committee.

A senior State Department official said the $50 million would probably be "reprogrammed" for humanitarian aid to the Palestinians but Congress would have to agree to that.

Hamas, whose charter calls for Israel's destruction, has masterminded 60 suicide bombings during a Palestinian uprising but has largely abided by a truce declared last year.

It is forming a government after winning a January election against the long-dominant Fatah party. Hamas capitalized on the popularity of its charity network as well as its armed wing and also promised to clean up corruption.

The Bush administration says U.S. law forbids it from giving assistance to a Hamas-led government because of the group's listing as a terrorist group.

HUMANITARIAN AID

Since Hamas' victory, Washington has launched a review of aid to the Palestinians and their cash-strapped government.

Welch said the United States was looking for ways to continue getting humanitarian funds to the Palestinians.

"It serves important U.S. national interests," he said, but added, "We have not, do not and will not provide assistance to Hamas -- in government or out of government."

In the past decade, the United States has given $1.5 billion in aid to the Palestinians, most via nongovernmental groups.

Rep. Henry Hyde, an Illinois Republican who chairs the committee, said a cut-off in aid for humanitarian purposes would enable other "terrorist regimes" such as Syria and Iran to fill the funding gap.

But a senior Bush administration official expressed doubt about Iran and Arab countries making up any aid shortfall.

"I would be surprised if a gigantic amount of money came forward. After all, every year there are pledges through the Arab League (for aid to the Palestinian Authority) and they are not met," he said. "I have not frankly seen the generosity."

The United States and its partners in Middle East peacemaking -- the United Nations, Russia and the European Union -- issued a statement in London on Jan. 30 that all international aid would be reviewed if Hamas did not change.

They say Hamas must recognize Israel's right to exist, renounce violence and accept existing agreements with the Jewish state.

Since that meeting, Russia irked the Bush administration by being the first major power to offer talks with Hamas. Hamas representatives headed to Moscow on Thursday for discussions.

California Democrat Tom Lantos, a survivor of the Holocaust, said he was sickened by contacts between Hamas and countries such as Russia and Turkey.

"The blood of dozens of Americans and hundreds of Israeli men, women and children is on those hands," said Lantos.

James Kunder of the U.S. Agency for International Development, assured lawmakers his agency would do all it could to ensure "not one dollar" reached Hamas. (Additional reporting by Matt Spetalnick and Carol Giacomo)

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