Hamas 'won't cave into West's financial pressure'

Palestinian Prime Minister Ismail Haniyeh today said the Hamas-led government will not cave in to financial pressure from the West.

He urged thousands of supporters to be patient as he sent an envoy to the Arab world to raise money for the cash-starved Palestinian Authority.

Addressing the largest public rally since taking office, Haniyeh said Arab and Muslim nations have a “duty” to help his beleaguered government.

He accused political rivals of forming an “unholy alliance” with the West.

“Attempts to destroy this government and put obstacles before it and disrupt it will only be met with more steadfastness, resolve and solidarity,” Haniyeh told the rally.

Similar demonstrations in support of the government were held elsewhere in Gaza and the West Bank.

Western nations have suspended tens of millions of pounds in direct aid to the Palestinian Authority, demanding that Haniyeh’s government renounce violence and recognise Israel’s right to exist.

The United States and European Union consider Hamas, whose suicide bombers have killed hundreds of Israelis, a terrorist group.

Stepping up the pressure, the US government today said it has barred Americans from most business dealings with the Palestinian government.

“Transactions with the Palestinian Authority by US persons are prohibited, unless licensed,” the Treasury Department said. The decision was based on “existing terrorism sanctions”.

The restrictions do not apply to humanitarian work and people employed by international organisations such as the United Nations. Palestinian officials condemned the American decision.

Haniyeh has refused the calls for moderation, despite a mounting financial crisis that has left his government broke and unable to pay overdue salaries to 140,000 government workers. Israel also has suspended the transfer of about €44.8m in monthly taxes it collects for the Palestinian government.

During a midday stop at a mosque in Gaza’s Jebaliya refugee camp, Haniyeh told hundreds of supporters that the suspension in aid would not bring down his government or crush the spirit of his people.

“The Palestinian people will not give up their government no matter how many sacrifices we have to make. We are prepared to eat thyme, salt and olives,” he said, telling worshippers that God is on their side.

As he spoke, Palestinian Foreign Minister Mahmoud Zahar began a fund-raising tour of Arab nations. The two-week trip includes stops in Egypt, Jordan, Saudi Arabia, Bahrain and Kuwait.

Hamas has said it would make up the financial shortfall by appealing to the Arab and Muslim world.

But Arab states have so far failed to back up their rhetorical solidarity with the Palestinians with money, and it is uncertain if Zahar will be successful on his trip.

Haniyeh told the Gaza City rally that the Muslim world is obligated to help the Palestinians.

“We are not calling for donations. This is the duty, the duty of the nation toward the Palestinian people,” he said.

Thousands of Hamas supporters joined the demonstration, pledging allegiance and patience for the government.

There have been few signs of popular discontent with the new government, but individual Palestinians have expressed growing impatience now that wages are two weeks overdue. The Palestinian Authority is the largest employer in the West Bank and Gaza, sustaining about one-third of the population.

Meanwhile, the Israeli army launched a new rtillery barrage at the Gaza Strip today after Palestinian militants fired eight home-made rockets at Israel, the army said. Later, a homemade rocket landed in a southern farming community, causing no injuries.

The cross border fighting has escalated over the past week, with 16 Palestinians in Gaza killed by Israeli shelling and targeted attacks on militants.