Middle East

Israel releases Palestinian funds

(AP)
Updated: 2007-06-25 08:48

"We are strong enough to take calculated risks," he was quoted as saying.

In return, Israel will demand in Egypt that Abbas confront militants - something he had been reluctant to do before Hamas' Gaza victory.

"We shall present there our expectations from the opposite side, our demands on the issues of security and the war against terror, but definitely also our readiness to cooperate with the new government," Olmert said in televised comments before the Cabinet meeting.

Hamas rout of Abbas' Fatah movement from Gaza left the Palestinians with two governments - Abbas' new Cabinet in the West Bank, and the Hamas rulers in Gaza. Israel and moderate Arab leaders have joined together in support of Abbas, who favors peace with Israel, while trying to isolate Hamas, a radical group pledged to Israel's destruction.

Olmert aide David Baker said it was premature to begin talks on a final peace deal.

Israel is prepared to discuss "a political horizon," he said. "These talks do not include final status issues, but rather how the prime minister and the president of the Palestinian Authority would envision a future Palestinian state."

Since losing control of Gaza, Abbas has acted with uncharacteristic determination: In addition to expelling Hamas from the coalition government, he has set up an emergency Cabinet, and embarked on a widening crackdown on the Islamic group that has included arrests of hundreds of gunmen in the West Bank and a plan to dry up its funding.

The Hamas takeover of Gaza has complicated the case of Gilad Shalit, an Israeli soldier held captive by Hamas-linked militants in the coastal territory for a year. Alan Johnston, a BBC reporter kidnapped by militants on March 12, also is being held.

Haniyeh denounced Johnston's kidnapping, saying it harms Palestinian interests. He also made a reference to a videotape showing Johnston wearing an explosives belt of the type used by Palestinian suicide bombers. The recording has not been seen in public.

Hundreds of protesters gathered outside Israel's parliament to mark the one-year anniversary of Shalit's capture. Noam Shalit, the soldier's father, criticized the government for failing to win his son's release.