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WORLD / Top News

US aid now likely after Hamas sets govt
(Reuters)
Updated: 2006-03-24 15:43

The Bush administration is expected to wait until after a Hamas-led government is in place to make final decisions on the fate of U.S. aid programs, U.S. diplomats said on Thursday.


Hamas Prime Minister-designate Ismail Haniyeh (2nd-R) inaugurates a Palestinian foundation in Gaza, March 23, 2006. [Reuters]

A delay of several weeks could buy the administration time to try to iron out differences with its partners in the Quartet of Middle East mediators -- the European Union, Russia and the United Nations -- over how to sideline the Islamic militant group without collapsing the Palestinian economy.

The delay could also give the Bush administration time to see what policies Hamas puts in place and assess how its government will be structured before announcing any decision.

Stewart Tuttle, the U.S. Embassy spokesman, said the Bush administration's position on Hamas remained unchanged and that there was no connection between the timing of the aid review and the formation of a Hamas government.

The EU has held back from deciding the fate of its financial aid to the Palestinians, giving Hamas more time to act on calls to moderate its stance on Israel.

Hamas's government is expected to win parliamentary approval next week, but U.S. officials said the administration's review of all aid programs was unlikely to be completed for several more weeks, if not longer.

"The formal formation of a Hamas government is not the red line for our decisions on which aid programs are going to go forward," said Tuttle.

"Our evaluation of all of our programs is ongoing and decisions on which programs will go forward -- and how -- will move on its own timetable," Tuttle added.

"It's wait-and-see," said a U.S. diplomatic source. "We're not going to get out in front of the formation of a government."
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