U.S. EASES POLICY ON HAMAS

WASHINGTON [MENL] -- The Bush administration has significantly eased its
opposition to Hamas and no longer sees the Islamic movement as an
intractable obstacle to an Israeli-Palestinian peace settlement.

Officials said the administration has agreed to an international effort to
help a Palestinian government controlled by Hamas. They said the
administration has set guidelines to ensure continued U.S. financial and
other support to a Hamas government that accepts democratic principles and
renounces violence.

"We accept Islamist parties if Islamist parties accept the rules of the
game," William Jordan, head of the State Department's North Africa bureau,
said. "It's up to Hamas to decide whether to accept the rules of the game."

Officials acknowledged that the new administration policy departed from the
State Department ban on Hamas as a terrorist organization. Under federal
law, the United States and its citizens are banned from supporting or
engaging a group deemed terrorist.
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