http://www.nytimes.com/2006/12/25/world/middleeast/25mideast.html

Hamas Dismisses Israeli Concessions to Abbas
Published: December 25, 2006

JERUSALEM, Dec. 24 --- Hamas, the militant Islamic faction that leads the 
Palestinian government, on Sunday dismissed as inconsequential the 
Israeli concessions made a day earlier to Mahmoud Abbas, the Palestinian 
Authority president.

Hamas was also critical of Mr. Abbas for his willingness to work with 
Israel's prime minister, Ehud Olmert, at a time when Mr. Abbas had 
broken off negotiations working toward a Palestinian unity government 
with Prime Minister Ismail Haniya, of Hamas.

Mr. Olmert and Mr. Abbas held their first formal meeting Saturday night, 
and the Israeli leader made gestures intended to bolster Mr. Abbas, of 
the Fatah movement, in his power struggle with Hamas.

The most significant step was to transfer $100 million in tax revenue 
that Israel has collected on behalf of the Palestinians but started 
withholding after Hamas won legislative elections in January and then 
took over the government. Israel's cabinet unanimously approved the 
transfer on Sunday, to be used for Palestinian humanitarian needs.

However, the immediate effect of the Saturday night meeting was to 
strain further the already fraught relations between Mr. Abbas and 
Hamas. Fatah and Hamas gunmen have battled repeatedly in the Gaza Strip 
in recent weeks, though the past few days have been calm.

"President Abbas should have met with Prime Minister Ismail Haniya to 
form a national unity government," Ismail Radwan, a spokesman for Hamas, 
said Sunday.

Mr. Olmert, speaking at the beginning of the weekly cabinet meeting, 
said he expected to hold additional meetings with Mr. Abbas. "Our 
intention is to begin ongoing negotiations in order to advance the peace 
process that we want so much," Mr. Olmert said.

At the meeting Saturday, the Israeli leader also pledged to remove some 
West Bank checkpoints and to allow more trucks to travel to the main 
cargo crossing between the Gaza Strip and Israel.

There was no agreement on the release of Palestinian prisoners, an issue 
the Palestinians consider very important. Israel's position has been 
that Palestinian militants must release an Israeli soldier they captured 
in June before a significant number of Palestinian prisoners are freed.

However, at the Israeli cabinet meeting, several ministers raised the 
possibility of releasing at least some Palestinian prisoners before the 
Muslim holiday of Id al-Adha, which begins Saturday. Israel has done so 
in the past, and Mr. Olmert said he was willing to consider the proposal 
in the coming days, an official who was at the meeting said.

Since Hamas came to power in the spring, Israel has been withholding tax 
and customs revenue it collects on behalf of the Palestinians, and the 
money now totals about $500 million.

Before Israel cut off the money, it was sent to the Palestinian Finance 
Ministry for general budget expenditures. Now it will be channeled 
through Mr. Abbas's office.

While the money could restock hospital supplies and meet other pressing 
Palestinian needs, it falls well short of the $150 million or more 
needed to cover a single month of the Palestinian Authority's budget.

"The money withheld by Israel is Palestinian money, and Israel has no 
right to control it," said Ghazi Hamad, a spokesman for the Hamas-led 
government. "It's ours, and they use this money to pressure the 
Palestinians."

Hamas has always refused to deal with Israel and has argued that 
negotiations with it have produced few gains for the Palestinians. Over 
all, Palestinians seemed less than impressed with the meeting's outcome.

"In the Palestinian view, the Israeli concessions to Mahmoud Abbas are 
very minor," said Mkhaimar Abusada, a political science professor at Al 
Azhar University in Gaza City. "Also, this will definitely have a 
negative effect on his relations with Hamas."

In another development, the militant Palestinian faction Islamic Jihad 
claimed responsibility for firing rockets from the Gaza Strip into 
southern Israel. Israeli officials say the persistent rocket fire will 
lead to an Israeli response.

Taghreed El-Khodary contributed reporting from Gaza.

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