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Key powers back Abbas government US, EU restore Palestinian ties
(about 3 hours later)
Key international powers have publicly backed the new Palestinian Authority government, offering aid and support to an administration without Hamas. The US and the EU are to normalise ties with the new Palestinian government, lifting embargoes on aid to support an administration without Hamas.
US President Bush phoned Palestinian leader Mahmoud Abbas pledging to work with his new government, aides said. US secretary of state Condoleezza Rice, promised "full assistance" to the Palestinian Authority and emergency humanitarian aid to Gaza via the UN.
The EU said it wanted to resume direct aid to the Palestinians, while Israel said the government was a "partner" and promised to release frozen funds. The EU has chosen to resume direct aid, while Israel said the new cabinet was a "genuine partner".
Mr Abbas sacked the previous government after Hamas seized control of Gaza.Mr Abbas sacked the previous government after Hamas seized control of Gaza.
In a 15-minute phone call with Mr Bush, Mr Abbas told the US president that the time was now right to push for new peace talks. In a separate development on Monday, one Palestinian was killed and several injured after Palestinian gunmen and Israeli soldiers exchanged fire at the Erez crossing, the Israeli rescue service and Palestinian medics said.
The crossing is the main point for people travelling between Israel and Gaza.
'Genuine partner'
In a 15-minute phone call with US President George W Bush, Mr Abbas said the time was now right to push for new peace talks.
In order to help the Palestinian people in Gaza, we will need some mechanism that cannot be direct support Javier Solana Profile: Salam Fayyad Fayyad's cabinet Send us your commentsIn order to help the Palestinian people in Gaza, we will need some mechanism that cannot be direct support Javier Solana Profile: Salam Fayyad Fayyad's cabinet Send us your comments
The US Consul-General in Jerusalem, Jacob Walles, met the new Prime Minister Salam Fayyad on Monday to explain how the US could offer practical support to the new administration.
Israeli Prime Minister Ehud Olmert, who is to meet Mr Bush in Washington on Tuesday, said he considered the new Palestinian government a "genuine partner".Israeli Prime Minister Ehud Olmert, who is to meet Mr Bush in Washington on Tuesday, said he considered the new Palestinian government a "genuine partner".
And speaking at an EU meeting in Luxembourg, Israeli Foreign Minister Tzipi Livni confirmed that up to $800m (£400m) of frozen tax revenues held by Israel would now be transferred to the Palestinian Authority.And speaking at an EU meeting in Luxembourg, Israeli Foreign Minister Tzipi Livni confirmed that up to $800m (£400m) of frozen tax revenues held by Israel would now be transferred to the Palestinian Authority.
"We are willing to work with those who support the two-state solution - those who understand and accept the right of Israel to exist," she said."We are willing to work with those who support the two-state solution - those who understand and accept the right of Israel to exist," she said.
'Direct relationship' Humanitarian concerns
The EU and US imposed an aid embargo on the previous government after Hamas won a surprise election victory in January 2006.The EU and US imposed an aid embargo on the previous government after Hamas won a surprise election victory in January 2006.
US officials have already suggested that they would resume aid in the light of Hamas' removal from government. EU foreign ministers said in a text of conclusions after talks in Luxembourg that the bloc "will resume normal relations with the Palestinian Authority immediately".
Q&A: Gaza chaos How Hamas took overQ&A: Gaza chaos How Hamas took over
Speaking in Luxembourg, The EU's foreign policy chief Javier Solana said the EU would now be prepared to make some direct payments to Mr Fayyad's government at some stage in the future. They also said the EU would "resume direct financial support to the government" and undertake "intensive efforts to build the institutions of the future Palestinian state".
"It is very important that he is able to construct a budget, and through that budget he will be able to help both people in Gaza and the West Bank," Mr Solana said.
Mr Solana added that the EU also planned to deliver economic aid to Palestinians in Gaza, but for the moment would continue to channel money through a temporary mechanism that bypasses Hamas.
"In order to help the Palestinian people in Gaza, we will need some mechanism that cannot be direct support," he said.
The EU, the biggest donor to the Palestinians, continued to give emergency humanitarian aid during the ban on contact with the former Hamas-led government.The EU, the biggest donor to the Palestinians, continued to give emergency humanitarian aid during the ban on contact with the former Hamas-led government.
The EU commissioner for external affairs, Benita Ferrero-Waldner, said the bloc would not immediately resume direct economic aid, but would instead wait for effective controls to be put in place.
There are already concerns that Gaza's 1.3 million residents could face shortages of food and other essential supplies in coming weeks because of an Israeli blockade of routes into and out of the territory.There are already concerns that Gaza's 1.3 million residents could face shortages of food and other essential supplies in coming weeks because of an Israeli blockade of routes into and out of the territory.
The borders to Gaza are closed, creating concerns over suppliesHowever, an Israeli government spokesman denied that Israel aimed to make the humanitarian situation in Gaza any worse. The borders to Gaza are closed, creating concerns over supplies
However, an Israeli government spokesman denied that Israel aimed to make the humanitarian situation in Gaza any worse.
An Israeli fuel company, Dor Alon, also said it had restored normal fuel supplies to the Gaza Strip after Palestinians protested against an earlier suspension.An Israeli fuel company, Dor Alon, also said it had restored normal fuel supplies to the Gaza Strip after Palestinians protested against an earlier suspension.