Israel Freezes $50 Million Of Palestinian Money For "Becoming A Terrorist Authority"...

New York Times   |  STEVEN ERLANGER   |   February 19, 2006 10:00 PM

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Israel's cabinet decided today to immediately freeze the transfer of about $50 million a month in tax and customs receipts due to the Palestinian Authority, arguing that Saturday's swearing in of a Hamas-dominated legislature means that the Palestinians are now led by the militant group.

"It is clear that in the light of the Hamas majority in the parliament and the instructions to form a new government that were given to the head of Hamas, the Palestinian Authority is in practice becoming a terrorist authority," the acting prime minister, Ehud Olmert, told his cabinet. "The state of Israel will not agree to this."

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