Israeli PM not ruling out peace talks with Palestinians

ACTING Israeli Prime Minister Ehud Olmert said yesterday he was not ruling out the possibility of future peace talks with the Palestinians, despite the appointment of Hamas leader Ismail Haniyeh as the new prime minister.

The overwhelming electoral success of Hamas, which calls for Israel’s destruction, damaged any chance of renewing stalled peace negotiations.

Israel has urged the international community to join it in isolating the Palestinian government following the swearing-in of the Hamas-controlled parliament on Saturday.

Yesterday, Palestinian leader Mahmoud Abbas officially appointed Mr Haniyeh as prime minister-designate.

Hamas leaders, who will form the next cabinet, sought to persuade other Palestinian parties to join it in a broad-based coalition government.

Mr Olmert said that the chances of reaching a “quick agreement” with the Palestinians were smaller now that Hamas was in charge.

“But the hope has not disappeared and I am responsible for both things - the battle against Hamas and maintaining hope, the chance to reach an agreement,” Mr Olmert said.

The US and EU consider Hamas a terrorist organisation. After Hamas took over parliament, Israel froze the transfer of roughly €41.9 million in tax funds to the Palestinian Authority and Western nations threatened to halt vital foreign aid once a Hamas cabinet takes office.

Israel and the Western nations have demanded Hamas renounce violence and recognise Israel’s right to exist.

Hamas leaders have resisted calls to moderate and said they would make up for the lost funds with new donations from Arab and Muslim nations.

That plan, however, hit a setback when Arab League foreign ministers failed to agree on new aid for the Palestinians.

“The aid is destined for the Palestinian people and not for Hamas,” Arab League Secretary General Amr Moussa said in an appeal for donations during a meeting in Algeria yesterday.

Trying to drum up support, Hamas political leader Khaled Mashaal visited Iran, whose leaders called on Muslim nations to make up the Palestinians’ budget shortfall.

“Since the divine treasures are infinite, you should not be concerned about economic issues,” the official Islamic Republic News Agency quoted Iranian President Mahmoud Ahmadinejad as telling Mr Mashaal yesterday.

“If you work for God, he will provide for you.”

In an apparent attempt to defuse international fears that the Palestinians will be led by what Israel calls a “terrorist authority”, Hamas picked Mr Haniyeh, whom many consider a pragmatist, for the prime minister post.