[Dr. Aaron Lerner - IMRA: It remains unclear how far PM Olmert intends to
go beyond releasing funds that have been held up by Israel since Hamas won
the PLC elections.

Incredibly, while the overall stability of the West Bank can be attributed
to Israeli security measures, it would appear that Washington wants Israel
to drop these measures as a gesture to "strengthen" Abbas while expecting
Israel to ignore the myriad of illegal terror cells in the West Bank
associated with the "moderate" Fatah. Will Olmert, once again, sacrifice
the security of Israeli citizens to please President Bush and Secretary of
State Rice?

Last but certainly not least - will PM Olmert rush to final status talks or
the formation of a sovereign Palestinian state in temporary borders per the
Road Map option in the hope that the move will protect him from criminal
indictment and keep his ruling coalition intact?]
--------

Olmert: New Abbas government is a partner for peace
By Haaretz Staff and News Agencies Last update - 00:59 17/06/2007
www.haaretz.com/hasen/spages/871561.html

Prime Minister Ehud Olmert said Saturday that a new emergency Palestinian
government, due to be sworn in Sunday, would be a partner for peace in
negotiations with Israel.

In the wake of the takeover of the Gaza Strip by Hamas, Palestinian
Authority Chairman Mahmoud Abbas on Thursday dissolved Fatah-Hamas unity
government sworn in three months ago.

"A government that is not a Hamas government is a partner [for peace],"
Olmert told reporters.

The prime minister spoke as he was leaving for the United States on a
three-day visit, during which he is due to meet U.S. President George W.
Bush.

"We have a new opportunity in the last few days that we haven't had in a
long time," Olmert told reporters.

Public Security Minister Avi Dichter said Saturday that Israel, fearing a
looming humanitarian disaster, will allow food and other basic supplies into
the Gaza Strip.

"Our consideration is the humanitarian issue. Allowing merchandise through
Karni [cargo crossing between Israel and Gaza] in order to prevent hunger in
Gaza is what will guide Israel to allow merchandise," Dichter told Channel 2
TV.

Dichter said Hamas' conquest in Gaza signaled the collapse of the
Palestinian Authority, the government entity established under past peace
accords. But he also said the new reality has turned the West Bank into an
arena of opportunity for Israel.

He said a Hamas-ruled Gaza Strip should be treated as a terror entity and
cut off its weapons supply. He said that could require Israel to deploy
along Gaza's border with Egypt to halt weapons smuggling.

Hamas' victory in the Palestinian parliamentary elections last year led to a
suspension of Western aid to the PA. The formation of the unity government
failed to lift the embargo, as the Palestinians had hoped.

But U.S. Consul-General Jacob Walles said Saturday that Washington plans to
lift the ban on direct aid to the new emergency government.

"I think... there won't be any obstacles, economically and politically, in
terms of reengaging with this government. Yes, they will have full support,"
Walles said.

"I expect that we are going to be engaged with this government," he added.
"I expect that early next week. There will be some announcements in
Washington, specifically about our assistance and about the financial
regulations."