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Israel Loosens Economic Sanctions

It agreed to send 11 million dollars from previously frozen Palestinian taxes

By Ruxandra Adam, News Editor

22nd of May 2006, 05:52 GMT

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Israel decided that time has come to provide some kind of aid to the Palestinian territories whose economy is on the brink of collapse, just before Israeli Prime Minister Ehud Olmert's first visit to Washington, where he will meet president Bush and obtain a US approval on his plan of evacuating parts of the occupied West Bank and replace them with others, although there are no peace talks with the Palestinians.



On Sunday, the Israeli cabinet authorized the release of 11 million dollars that would be taken from Palestinian taxes, which had previously been frozen by the Jewish administration. This political move has come as a result from pressures Israel has had to face in relation to preventing Palestinian's Authority economic breakdown, while the United States is conducting an isolationist policy regarding Hamas militants that are currently controlling the government.

Nevertheless, Israeli political officials stated that the sum of money that shall be released, would not go the Palestinian Authority, but will be used in order to buy hospital supplies based on recommendations made by foreign inspectors.

The response of the Palestinian Authority, concerning this decision, was altogether defiant, highlighting the fact that Israel is not doing anything special, since that particular amount of money rightfully belongs to them, with Palestinian government spokesman Ghazi Hamad stating that: "The money belongs to the Palestinian people. This is not an Israeli favor. It (Israel) uses this as a blackmail for political concessions."

The 11 million dollars is part of the 220 million dollars in Palestinian taxes and custom levies that Israel has suspended in order to force Hamas recognize the state of Israel, renounce violent acts and recognize all provisions resulting from peace accords. Western donors have applied the same measures, of cutting aid and halting contacts in order to push Hamas become more democratic.

Apart from the economic loosening, a sign that Israel is slowly but surely changing its foreign policies regarding the Palestinian government, two of Olmert's top deputies have conducted meetings with Palestinian president Abbas at an economic summit in Egypt, which goes to show Israel's intentions have moved to a more positive outlook.
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