UN faults Israel for halt in funds to Palestinians By Adam Entous February 20, 2006 Reuters Original Source: http://www.alertnet.org/thenews/newsdesk/L2028349.htm JERUSALEM, Feb 20 (Reuters) - The U.N. envoy to the Middle East raised objections on Monday to Israel's decision to withhold tax funds from the cash-strapped Palestinian Authority after a Hamas-led parliament was sworn in. Special Envoy Alvaro de Soto called the decision unhelpful and premature. Israel has long regarded the U.N. as a minor player in the Middle East peace process compared to the United States, which gave a low-key response to Israel's move. These are monies that belong to the Palestinians and should not be withheld, de Soto told Reuters one day after Israel's cabinet announced a permanent halt to the monthly transfer of about $50 million in tax revenues Israel collects on behalf of the Palestinians. Israel's government made the decision after Washington, the Jewish state's biggest ally, asked the Palestinian Authority to return $50 million of its own aid to ensure it does not reach Hamas. The Islamic group is sworn to Israel's destruction. But de Soto said Israel's decision to withhold the money ran counter to the position taken last month by the so-called Quartet of major peace mediators -- the United States, the European Union, the United Nations and Russia. It follows that the formation of a new government and the approval of its programme should be awaited and that actions prior to that would be premature, de Soto said. In its Jan. 30 statement, the quartet said Hamas would risk losing vital aid -- when it formed a government -- unless it rejected violence and recognised Israel. Commenting on Israel's decision, White House spokesman Scott McClellan appeared to focus on the quartet's demands of Hamas rather than on the timing of the Israeli move. We'll stay in touch with Israel on these issues, McClellan said. I think that our view has been spelled out very clearly, not only from our government but in the statement of the quartet. This is really about Hamas and the choice that Hamas has before it, McClellan added. That's the issue. Hamas needs to make the decision if they want to be a partner in peace. INTERIM ACCORDS Israel has called on the international community to shun a Hamas-led government until it renounced violence, recognised the Jewish state and agreed to abide by all previously signed interim peace accords. De Soto said Israel's obligation to transfer the tax revenue to the Palestinian Authority stemmed from one of these agreements. If the future Palestinian government has doubts about complying with previous agreements, these will be reinforced by non-compliance with those agreements by the other party to them, de Soto said. Mark Regev, Israel's Foreign Ministry spokesman, countered that it was Hamas which said these agreements should be thrown on the ash heap of history. The government's decision of yesterday stands, Regev said. Aides said de Soto relayed the U.N.'s objections to Israeli defence officials at a meeting on Sunday. The Palestinians receive about $1 billion a year from donors and the Palestinian Authority requires at least $100 million a month. Hamas has masterminded nearly 60 suicide bombings against Israelis since a Palestinian uprising began in 2000, but has largely adhered to a truce declared last March.