No Money for Hamas.

Navigation: Main page

Author: Ephron, Dan

MIDEAST

After the Islamic Hamas group swept to office in the West Bank and Gaza Strip earlier this year, one of Washington's first moves was to halt most aid to the Palestinian Authority. Now the United States is working to ensure no money from other countries flows to the government led by Hamas, which much of the world considers a terrorist organization. How? By pressing Arab banks in the region to turn away clients who wish to make money transfers to the Palestinian Authority. Worried about fines or other legal measures--the most painful would be a ban on operating in the U.S.--the banks are complying so far. A $70 million donation by Qatar and Saudi Arabia has been languishing in Cairo, where at least four banks have refused to wire the funds to Ramallah, according to bankers in the region and officials in Washington who requested anonymity in discussing confidential matters. "We have stated that if an organization or individual is facilitating direct fund-raising for Hamas, they open themselves up to action by the United States," Treasury spokeswoman Molly Millerwise told NEWSWEEK.

Other officials familiar with U.S. policy on Hamas, who spoke without authorization and thus can't be named, say the financial cordon is aimed at making governance for the Islamic group almost impossible. Hamas won a democratically contested election in January but is notorious for its suicide attacks against Israel. Israel is already withholding the other major source of Palestinian revenue--tax and Customs earnings that the Jewish state collects on behalf of the Palestinian Authority, worth about $50 million a month. "This is a sure way to drive Hamas back to militancy," said Afif Safieh, the top Palestinian diplomat to the U.S. With almost no outside funding, the Palestinian Authority has failed to pay salaries to its civil servants since February, he said. Nearly one third of Palestinians live off wages paid by the government.

PHOTO (COLOR): BROKE: Masked Hamas fighters

~~~~~~~~

By Dan Ephron