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Foreign Minister Tzipi Livni.
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Rice calls on borders to be opened for Palestinian economic development

 
Israeli FM: Hamas government would transform PA into "terrorist state"
By Associated Press  February 8, 2006
 
Israel's foreign minister said Wednesday that a Hamas-led Palestinian government could be designated a terrorist state, subject to sanctions, if it does not renounce terrorism and recognize Israel.

"When an entity, a state is being led by terrorists, the meaning is that this entity, this authority, this state is going to transfer into a terror state," Foreign Minister Tzipi Livni said at a news conference with Secretary of State Condoleezza Rice.

She said the international community has its "own sanctions and measures when it comes to an entity which transfers into a terror entity."

Rice was asked by a reporter about comments from Israel's acting prime minister, Ehud Olmert, that Israel will retain its main West Bank settlement blocs and all of Jerusalem when its permanent borders are drawn, but will give up parts of the West Bank where most Palestinians live

Rice said the U.S. position hasn't changed that "No one should try and unilaterally predetermine the outcome of a final status agreement."

Livni also said Israel should not be bound by agreements to give a Hamas-led Palestinian government customs duties and taxes it collects for the Palestinians.

"We are talking about the Hamas, which is a designated terrorist organization," Tzipi Livni said during a news conference with Secretary of State Condoleezza Rice. "It's something unacceptable to demand Israel implement its role in these agreements while the other side doesn't even agree that we have the right to exist, simple as that."

Israel has agreed to turn over about $50 million (?41.8 million) a month so long as the current caretaker government of Palestinian President Mahmoud Abbas remains in power. The United States had urged that course, and it is also continuing promised aid to the Abbas government while reviewing the long-term future of aid to the Palestinians now that they have chosen Hamas to lead them.

The monthly remittances for Israel are an important part of the budget for the perpetually cash-strapped Palestinian government, but overseas aid from European nations and from the United States makes up the bulk of the Palestinian budget.

Israel, the United States and the European Union consider Hamas a terrorist organization and have no official dealings with the militant group. Hamas' political wing trounced Abbas' Fatah Party in last month's elections, throwing the future of aid into question along with prospects for Israeli-Palestinian peace.

"It is totally forbidden under Israeli law to transfer money that can be used for terrorism," Livni said.

If Hamas continues to embrace violence and call for Israel's destruction, she said, the money that Israel turns over could "go to finance terror against our citizens."

Rice offered no opinion on whether Israel should continue to hand over remittances to a Hamas-led government. Agreements to turn over the money were viewed as a show of faith that Israel and the Palestinians could work together.

With U.S. guidance, the Abbas government had fitful negotiations with the Israelis over border crossings, the details of the Israeli withdrawal from the Gaza Strip and other matters. While both sides said they saw the other as a good-faith partner, they held no substantive peace talks.

Rice delivered a gentle admonishment to Israel on the touchy subject of borders. Acting Prime Minister Ehud Olmert said this week that Israel will retain its main West Bank settlements and all of Jerusalem when its permanent borders are drawn, while giving up parts of the West Bank where most Palestinians live.

Rice was asked why Israel shouldn't set its own borders if it no longer has a willing Palestinian partner with which to negotiate.

"No one should try and unilaterally predetermine the outcome of a final status agreement," Rice said.

Rice was stating long-standing U.S. policy about how Israel and the Palestinians should behave in the period before they reach the U.S. goal of two independent states, but her words signaled that the United States does not want to reopen the question.

Palestinians complain that Israel uses settlements as a land grab in areas that Palestinians want for their eventual state, and to complicate or frustrate the efficient administration of Palestinian areas. Israelis and Palestinians both claim a section of Jerusalem where many Arabs live.


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