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US asks Palestinians to return US$50m in aid
Washington has asked for the return of 50 million dollars in unspent Palestinian Authority aid to prevent the money from going to a government that doesn't recognize Israel, the Department of State said Friday.

"In the interest of seeing that these funds not potentially make their way into the coffers of a future Palestinian government that might not recognize the right of Israel to exist ... we've asked for it to be returned. And the Palestinian Authority has agreed to return it," said State Department spokesman Sean McCormack.

The move comes in the wake of the surprise election victory last month by the radical Islamist movement Hamas which could give it control over the Palestinian Authority.

he US considers Hamas a terrorist organization and has said it will not give aid to a Hamas-controlled Palestinian Authority that rejects Israel's right to exist and refuses to renounce terror.

McCormack said that the 50 million dollars, intended for infrastructure development, remained in the bank.

"Whether or not this 50 million dollars makes its way into those kinds of programs or other programs that we might find acceptable in terms of our law and our policy, we'll see."
Posted by: phil_b 2006-02-17
http://www.rantburg.com/poparticle.php?ID=142970