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Israel hands Abbas frozen funds

Israel hands Abbas frozen funds Israel has transferred to the Palestinians $100m (77.2m euros, £50.7m) of tax revenues withheld since Hamas won elections last year.

The money has been paid directly to the Palestinian President, Mahmoud Abbas, and not the Hamas-led government.

It represents a sixth of the total collected on behalf of the Palestinian Authority since the election.

The money comes from taxes on Palestinians working in Israel and other tariffs.

'Crippling effects'

Analysts say that the money is part of Israel's bid to strengthen moderate Palestinian leader Mahmoud Abbas in his power struggle with Hamas.

Rival Palestinian factions Fatah and Hamas have been locked in conflict following Hamas's election victory which prompted an international aid boycott.

The BBC's Rachel Harvey in Jerusalem says however the money is distributed, it is desperately needed.

The Palestinian government has been crippled in part by the lack of tax revenues but also because of a continuing international financial boycott.

The move comes just days after US Secretary of State Condoleezza Rice held meetings with both the Palestinian and Israeli leaders.

She has said she plans to host a three-way summit with Mr Abbas and Israeli Prime Minister Ehud Olmert early next month.



Under American pressure Israel has made a big mistake.

We must move to a mental state of being at war with the Palestinians. It is time for the Israeli government and the Israeli population to grow up and face the facts.

We tried to make peace with people that don't want peace they want our death and the end of our state.

Israel must understand that America and the administration does not have Israel's best interest at the center of American policy and as a result Israel must tell America thanks but no thanks.

Israel must adopt a war footing against the Palestinians and we must choke off funds and weapons from the Palestinians and we must build the IDF and the Israeli people up for the war that we must fight against the Palestinians.