US 'blocks' Palestinian aid plan [View All]

http://news.bbc.co.uk/2/hi/middle_east/4976368.stm

The European Commission is considering plans to send funds to the office of the president, bypassing the Hamas-led Palestinian government.

Under the proposal, money for basic services such as health and education, could go to Mahmoud Abbas' office.

The commission's report said the plan might "avert or delay" a collapse of the Palestinian Authority (PA).

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The official view in Washington is that if Hamas refuses to recognise Israel, and eventually collapses, it will have no-one to blame but itself.

But, our correspondent says, many in Europe feel that wielding the big stick against Hamas will be counter-productive, and that it is in no-one's interests for Gaza and the West Bank to descend ever deeper into poverty and lawlessness.

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