End to US embargo on Palestinians puts pressure on Israel

The US decision to end an economic and political embargo on the Palestinian Authority increased pressure for a reciprocal move from Israel as the Bush administration hoped to improve the chances for peace.

Swift changes in Palestinian politics in recent days has left a Western-backed moderate, Mahmoud Abbas, in control of one Palestinian government in the West Bank and his Islamist rival Hamas in control of the separate Gaza Strip.

The new situation quickly became the main topic for a previously scheduled meeting today between President George Bush and Israeli Prime Minister Ehud Olmert.

Mr Bush planned to discuss Mr Abbas’ request for a reinvigorated peace initiative. An emboldened Mr Abbas told Mr Bush in a phone call yesterday that this is the time to make a move.

Israel has seemed likely to free up millions of in tax revenue it collects on behalf of the Palestinians, assuming it could ensure that the money flowed only to Mr Abbas’ government.

Ahead of his meeting with Mr Bush, Mr Olmert promised to be a partner with Mr Abbas, something the Bush administration has been pushing, but it was not clear how far Mr Olmert was willing to go.

Secretary of State Condoleezza Rice, meanwhile, was to brief members of Congress today about the Bush administration’s decision to restart the flow of aid to Abbas’ government.

She announced the move yesterday, after more than a year in which the United States pledged support for Mr Abbas, also known as Abu Mazen, but withheld money for fear it would benefit Hamas radicals governing alongside him.

Hamas’ surprise victory in the 2006 Palestinian elections ended decades of dominance by Mr Abbas’ Fatah party. Hamas won largely on the strength of the services and efficient government it delivered in its Gaza stronghold.

Hamas refuses to recognise Israel or renounce violence, conditions the world set for diplomatic engagement and aid. Hamas claims responsibility for the deaths of scores of Israelis in suicide attacks. Israel, the European Union and the United States list it as a terrorist group.

Mr Abbas was elected separately and retained office through months of political impasse and upheaval.

He tried a coalition government this spring, but dissolved it last week after days of clashes in Gaza between his forces and Hamas that killed some 100 Palestinians.

Mr Abbas expelled Hamas from the Palestinian government last week after the Islamist group routed his forces in Gaza, leaving the president’s more moderate Fatah movement in control of the West Bank.

As a first step, Rice said she will ask Congress to rework an existing $86m (€64m) aid request for the Abbas-led government.

At the same time, she announced a separate $40m (€30m) contribution to United Nations relief for Palestinian refugees, a gesture to the 1.5 million Palestinians living in increasingly desperate conditions in Gaza.