GAZA CITY, 2 July 2007 — The Israeli government ended an economic blockade of the Palestinians as it released some $50 million in frozen tax funds to the government of President Mahmoud Abbas.
Israel and the international community have been trying to support Abbas since Hamas routed his Fatah movement and violently seized the Gaza Strip last month. The infighting has left the Palestinians with two rival governments — the isolated Hamas regime in Gaza and Abbas’ emergency Cabinet in the West Bank.
Israel has frozen roughly $600 million, mostly customs duties that it collects on behalf of the Palestinians, since Hamas won Palestinian elections in January 2006. Israel said Hamas, which is sworn to Israel’s destruction and has killed hundreds of Israelis in bombings, could use the money to fund attacks.
After Abbas expelled Hamas from the Palestinian government last month, Israeli Prime Minister Ehud Olmert said the financial transfers would resume.
The tax funds account for roughly half of the Palestinian government’s operating budget. Without the money, the government has been unable to pay regular salaries to its 165,000 workers. Since the government is the largest employer in the Palestinian territories, the sanctions have crippled the Palestinian economy.
Olmert’s spokeswoman, Miri Eisin, said at least $50 million would be sent to Abbas’ government initially. Jacob Galanti, another official in Olmert’s office, said the transfers were to begin yesterday. The remainder of the frozen funds are expected to turned over to Abbas over the next six months, officials said.
In the West Bank town of Ramallah, officials in the office of Abbas’ prime minister, Salam Fayyad, said they expected to receive the money by today. They said the money was essential because Fayyad, who also is the finance minister, has pledged to pay workers’ salaries this week.
Officials said Fayyad intends to pay government workers in Gaza as well, underlining Abbas’ claim to represent all Palestinians. In Gaza, Hamas spokesman Ghazi Hamad said the money “is not a gift or favor from Israel. I think it should be paid without any conditions and without conferences.”
Olmert also has promised to free 250 Palestinian prisoners as a goodwill gesture to Abbas, though the move is on hold while security officials decide on the list, an Israeli official said. Speaking to his Cabinet, Olmert said warming ties with Fayyad create “paths for cooperation.”
— With input from agencies
