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Arab, Muslim funding? By Lara Sukhtian The Associated Press DUBAI With the United States and Europe threatening to cut funding to a Hamas-led Palestinian government, the Islamic group says it will turn to the Arab and Muslim world to finance day-to-day expenses. The question is, though, will the potential benefactors pay up? Money is quickly turning into a powerful and effective bargaining tool for Western, and Arab, nations who want to see Hamas assume a more moderate political agenda. But as donors wait to see how Hamas will react after its startling parliamentary victory, concerns mount that the region could dip further into chaos if countries like Iran step in to pay the Palestinians' bills. Government officials in the oil-rich countries of Saudi Arabia, Kuwait and Qatar, the most likely donors, are staying clear of the subject for now, refusing to discuss the issue despite repeated contacts from the Associated Press. Analysts say that although most wealthy Gulf nations and even Europe and the United States will not stand by and watch the Palestinians starve, the Arab and Muslim world was not likely to provide the kind of cash Western nations were giving the Palestinians before Hamas won 74 out of 132 seats in parliament last week. "Arab countries are committed to continue their assistance to the Palestinians according to the Arab summit resolutions until they will be able to set up their own independent state," said Mohammad Sobeih, deputy secretary general of the Arab League. Arab countries are committed to giving $55 million a month to the Palestinian Authority, but Sobeih said many Arab governments have been reluctant to pay their share for a variety of reasons. "Money is going to be the weapon and a very effective one," said Gulf analyst Mustafa Allani of the Gulf Strategic Studies Centre. "If Hamas wants to deliver basic requirements for the Palestinians, basic services, they're going to need money, and if this is going to be the point of pressure, I think Hamas is going to have to consider a major shift in political ideology." Already, Hamas is showing small signs of softening. At a Monday news conference, the group asked the international community to keep the aid flowing, promising not to use the money for violent activities. "We call on you to transfer all aid to the Palestinian treasury," Ismail Haniyeh, a Hamas leader in Gaza, told the news conference. "We assure you that all the revenues will be spent on salaries, daily life and infrastructure." And in an interview with CNN's "Late Edition" Sunday, Hamas lawmaker and prominent leader Mahmoud Zahar sidestepped a question about the group's willingness to recognise Israel. "It's not a matter of rejection [of Israel's existence]. Israel is here, present by power," Zahar said. But the rhetoric continues, and so do the threats, and now Hamas is eyeing the Arab and Muslim world for financial support, though it's seeming less and less likely that fellow Arabs will meet any shortfall. Many Arab countries including Saudi Arabia which the Palestinians' largest Arab donor do not have diplomatic ties with Israel, but most have tacitly accepted a two-state solution for bringing peace to the Palestinian-Israeli conflict. Supporting a Hamas-led government that calls for the destruction of Israel and advocates violence as a solution to the decades long conflict would be seen as political suicide by the wealthy Arab nations, who enjoy strong backing from the United States. "When you give financial support under these circumstances, there is a political price for it. You cannot divorce the two," said Gulf analyst Allani. "All these Arab donor countries already committed a long time ago to a two-state solution and I don't see that they are going to support a government which rejects this principle." But even if the US and Europe cut off all direct and indirect funding to the Palestinians, the money won't entirely dry up. No doubt, Islamic charities, private donors, and the non-governmental organisations sympathetic to the Hamas agenda from around the world will continue to send money to the Palestinians. Hamas has its fans in the Muslim world and has survived since it was created 19 years ago through donations that some believe have reached tens of millions of dollars a year. Iran is another possible benefactor. Already believed to fund the Lebanese group Hizbollah, the Islamic republic congratulated Hamas on its victory and appeared ready to chip in if the West cuts off aid. "Iran will enter the scene and would help the new Palestinian government," said Mashallah Shamsolvaezin, an adviser to the Middle East Strategic Studies Centre in Tehran, an organisation closely affiliated with the Iranian foreign ministry. Ephraim Kam, deputy director of the Jaffee Centre for Strategic Studies, a Tel Aviv think tank, says Iran could provide several million dollars in extra aid, if the West turns off the taps. Such a development would only increase Iran's popularity in the region. But several million dollars is pocket change compared to what Hamas needs to run the Palestinian Authority, a government with an annual operating budget of about $1.6 billion. Today, nearly two-thirds comes from international donors mostly from Europe, international donor agencies, the United States and Asian governments. The Group of eight industrialised nations promised an additional $9 billion last summer, most of it as private investments over the next three years. The Hamas victory puts all that at risk. The US, Europe and Israel list Hamas as a terrorist organisation and all three are threatening to cut funding. Acting Israeli Prime Minister Ehud Olmert said Sunday that after Hamas sets up a government, Israel will stop transferring tens of millions of dollars a month to the Palestinians in customs and taxes it collects on their behalf. On Monday, both the US and EU made it clear that they will only deal with a Hamas government that has denounced violence and recognised Israel's right to exist. If the West cuts off funds and the Arab governments don't give it, the Palestinian territories will slip further into poverty and desperation, an option analysts say no one is willing to risk. "The West doesn't want to give money to Hamas, but it doesn't want the PA to collapse either, [knowing] the deepened human misery that would bring," said Kam, the Israeli analyst. "They could find a third way. I expect aid to decrease, but I imagine some will continue, because no one in the West will want to see the PA collapse." Tuesday, January 31, 2006 -------------------------- Want to discuss this topic? Head on over to our discussion list, [EMAIL PROTECTED] -------------------------- Brooks Isoldi, editor [EMAIL PROTECTED] http://www.intellnet.org Post message: osint@yahoogroups.com Subscribe: [EMAIL PROTECTED] Unsubscribe: [EMAIL PROTECTED] *** FAIR USE NOTICE. This message contains copyrighted material whose use has not been specifically authorized by the copyright owner. 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