PM agrees to transfer $100 million in frozen PA taxes to Abbas
By Aluf Benn, Avi Issacharoff and Yoav Stern, Haaretz Correspondents, and
Agencies
Last update - 23:15 23/12/2006
www.haaretz.com/hasen/spages/804608.html

Prime Minister Ehud Olmert agreed Saturday during a meeting with Palestinian
Authority Chairman Mahmoud Abbas that Israel will make some concessions to
help bolster the PA chairman, who is in a power struggle with the ruling
Islamic militant group Hamas.

The leaders concluded two-hour talks at the Prime Minister's Residence in
Jerusalem on Saturday evening.

Olmert informed Abbas that Israel would transfer $100 million from frozen
taxes collected on behalf of the PA. The funds will be transferred directly
to Abbas, and not to the Hamas-led government.

Chief Palestinian Liberation Organization negotiator Saeb Erekat confirmed
during a press conference Saturday evening in Ramallah that Israel has
agreed transfer the funds for humanitarian purposes. Erekat said the two
sides also agreed that NIS 35 million would be transferred to hospitals in
East Jerusalem.

The funds transfer will not occur immediately, but rather will be dependent
on the establishment of a mechanism to ensure the money is used for the
purposes intended by Abbas, and does not end up in the hands of Hamas.

Erekat said the summit between Abbas and Olmert is the first in a series of
meetings.

Olmert also agreed to remove several West Bank checkpoints, and reexamine
security procedures at the Karni commercial crossing between Israel and the
Gaza Strip, in order to facilitate to movement of goods into Gaza.

The prime minister emphasized during the meeting that no Palestinian
prisoners held in Israeli jails will be freed prior to the release of
captured Israel Defense Forces soldier Gilad Shalit, held since June 25 by
several Palestinian militant groups. Nonetheless, Olmert did agree to
reestablish a joint committee with the PA to discuss prisoner releases.

According to Erekat, Abbas asked Olmert to release members of the
Palestinian Legislative Council from Hamas, as well as renew a past
agreement not to pursue wanted militants.

Israel has also agreed in principle to allow Egypt to provide Abbas'
security forces with weapons as well as allow the PLO's Badr Brigade to
enter the territories. The brigade is currently stationed in Jordan.

Olmert also warned Abbas that given the continued Qassam rocket fire, it
will be difficult for Israel to maintain its policy of restraint. Responding
to a request by the Palestinian delegation to extend the cease-fire to the
West Bank, Olmert said the Palestinians must first demonstrate an ability to
uphold the truce in Gaza.

Officials described the meeting as a private one, and therefore the two
leaders did not hold a press conference.

Abbas and Olmert met informally on the sidelines of a conference in Jordan
earlier this year, but the PA chairman's last formal meeting with an Israeli
prime minister was in February 2005, when Ariel Sharon held the post.

Olmert emerged from his official residence in Jerusalem to greet Abbas. The
two shook hands and also kissed each other on the cheek. Abbas was then
introduced to Olmert's wife Aliza, an artist known for her dovish views.

The two leaders took seats opposite one another at a long table, set for a
meal and covered by white cloth. Israeli and Palestinian flags served as
table decorations.

In a speech at a memorial ceremony for David Ben-Gurion last month, Olmert
said that he would "invite Abu Mazen [Abbas] to meet with me immediately, in
order to conduct a real, open, genuine and serious dialogue between us."