1. AMERICAN AID TO PALESTINIANS DEEMED ‘HUMANITARIAN’ WILL CONTINUE… Despite threats to cut off U.S. aid to the Hamas-led Palestinian Authority, the Bush administration will continue providing what it calls “humanitarian aid.” Apparently fearing an anti-U.S. backlash if all aid is suspended, visiting Assistant Secretary of State for Near Eastern Affairs David Welch told reporters in Ramallah on Saturday that the U.S. “continues to be devoted to the humanitarian needs of the Palestinian people and shall remain so.” The administration also believes that its aid money should be used to shore up Mahmoud ‘Abbas – a position it shares with the European Union. Most of the more than $400 million in American aid the Palestinians received last year was channeled through non-governmental organizations and United Nations agencies. Assuming the same system of distributing funds continues under the banner of “humanitarian aid,” American aid under the incoming Hamas-led government will be unchanged in spite of threats from U.S. officials and a Congressional resolution. Israel is also using the humanitarian aid designation to circumvent its own threats to cut off all assistance to the P.A.
2. INCOMING PALESTINIAN PRIME MINISTER SETS CONDITIONS FOR RECOGNITION OF ISRAEL… The man who will serve as prime minister in the Hamas-led Palestinian Authority told the Washington Post on Saturday that Israel can have recognition in return for its full withdrawal from post-1967 territories and a Palestinian state. Isma’il Haniyya said Hamas is “ready to recognize” Israel if it meets the conditions – which include a withdrawal from east Jerusalem. Haniyya also reiterated the call for a ‘right of return’ to Israel for Arabs displaced by the 1948 War. Regarding agreements already signed by Israel and the Palestinian Authority, Haniyya said the Hamas-led government will review each one and “abide by those that are in the interest of the Palestinian people.” P.A. Chairman Mahmoud ‘Abbas has demanded that all agreements already signed be honored.
3. ‘ABBAS THREATENS RESIGNATION… Palestinian Authority Chairman Mahmoud ‘Abbas told a British television network that he will resign if he is too hampered by the new Hamas-led administration. He said that, “We could reach a point where I cannot perform my duty…If I can do something, I’ll continue, otherwise, I won’t.” On Friday, ‘Abbas told Israel’s Channel 10 television that it is he, and not Hamas, that sets policy for the Palestinian Authority.
4. FORMER ISRAELI SPY CHIEF: DON’T UNDERESTIMATE A SMART ENEMY… A former chief of Israel’s famed Mossad intelligence agency has warned his government and countrymen not to “underestimate” Hamas. Ephraim Halevy told Israel Radio that Hamas is an “intelligent enemy – a very dangerous enemy that one should not scorn or underestimate.” Halevy called for an armistice between Israel and Palestinian factions, arguing that with Hamas in control the parties are at a diplomatic standstill. He said “long-term interim agreements are more appropriate now.”
5. OLMERT ALLY SAYS NEW PALESTINIAN PM NOT IMMUNE FROM ASSASSINATION POLICY… A former head of Israel’s Shin Bet security agency said the Palestinian prime minister-elect is a “legitimate target” for Israel’s policy of targeted assassinations. Avi Dichter, who is believed to be in line for a top security post if the Qadima party wins in Israel’s March election as is expected, told the daily Yediot Aharonot that Isma’il Haniyya’s position will not earn him any form of immunity from assassination if Hamas carries out terrorist attacks. He argued that attacks require the consent of leadership. Under Dichter’s tenure as Shin Bet head, such Hamas notables as Sheikh Ahmad Yasin and ‘Abd Al-‘Aziz A-Rantisi were killed in targeted attacks by the Israelis.
6. OLMERT SUPPORT WEAKENS, BUT NETANYAHU AND PERETZ FAIL TO CAPITALIZE… Acting Israeli Prime Minister Ehud Olmert appears headed for election by default. According to a new poll commissioned by Globes financial newspaper and conducted by the Harris organization, half of Israelis believe Olmert is not fit to be prime minister. But the bad news for opponents Binyamin Netanyahu of Likud and ‘Amir Peretz of Labor is that even more of the public rejects their fitness to hold the post. According to Globes, the initial surge in Qadima’s strength was halted as the public saw Olmert as less fit to serve.
7. ISRAEL GETS SECOND FLAG-CARRIER ON TEL AVIV-NEW YORK ROUTE… Israel’s High Court of Justice has rejected a petition by El Al Airlines to block approval of Israir as a scheduled carrier on the lucrative Tel Aviv-New York route. El Al, which was privatized last year, believed it had an arrangement with the government that would continue to protect it from competition. It asked the court to back its position after Tourism Minister Avraham Hirschson approved Israir’s request. Israir has been flying the route as a charter carrier. The flying public is already benefiting from reduced fares spurred by new competition. Hirschson also recently signed an open-skies agreement with the European Union to increase the number of seats available to Israel after members of the hospitality industry presented compelling proof that government protection of El Al was having the effect of keeping potential tourists away.