Israel considers release of funds to Abbas -sources
Source: Reuters
(Adds details) By Adam Entous JERUSALEM, Dec 20 (Reuters) - Israel is considering releasing millions of dollars in withheld tax funds to Palestinian President Mahmoud Abbas, Western and Palestinian sources familiar with the discussions said on Wednesday. Releasing the funds could bolster Abbas in the run-up to new elections he has called over bitter objections from his Hamas rivals. The sources, who spoke on condition of anonymity, said Israel was considering releasing the money in stages, allowing Abbas to make payments to civil servants who have not received their full salaries since Hamas came to power in March. If a final decision is made to release the withheld tax funds to Abbas, one source said, "not all the money would go at once." Sources said several hundred million dollars could be given to Abbas as part of initial instalments. Abbas is expected to meet Israeli Prime Minister Ehud Olmert in the coming days, Palestinian sources said. It is unclear if any decision on the money would be taken at that time. Olmert's office declined to comment. "We have not been officially informed. We don't know how much the sum would be," said Rafiq Husseini, Abbas's chief of staff. Israel has been under pressure from Europea and the United Nations for months to release the Palestinian tax revenues -- now estimated at nearly $500 million -- to the moderate Abbas, who favours peace talks with the Jewish state. The Israeli government decided in February to halt tax revenue transfers, estimated at $50 million to $60 million per month, after the Hamas Islamists beat Abbas's Fatah movement in January elections. Hamas, which advocates Israel's destruction, has struggled to govern since taking office in March under the weight of Western sanctions imposed because of its refusal to recognise the Jewish state and renounce violence. Washington and its allies have sought to strengthen Abbas. Diplomats said earlier this week that Western powers and their Arab allies would also try to boost Abbas ahead of elections by pumping money into his office and programmes that could benefit him politically. The effort dovetails with a U.S.-led push to strengthen forces loyal to Abbas. Palestinian analysts said it could backfire if Hamas succeeded in painting Abbas and his Fatah faction as beholden to U.S. and Israeli interests. A Western diplomat said any move to send the funds to Abbas would require "a political decision from the top". Before making a final decision, Israel is seeking assurances that any money given to Abbas would bypass the Hamas-led government, the sources said. A portion of that money has been used to pay Palestinian utility bills to Israeli utility companies. Collected by Israel on behalf of the Palestinians, the tax revenues were used by the Palestinian Authority to pay salaries and other expenses before Hamas came to power. (Additional reporting by Wafa Amr in Ramallah)
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