GAZA: US favourite accepts key Palestinian ministry post

A U.S.-educated economist with close ties to the Bush administration agreed on Wednesday (February 21, 2007) to serve as finance minister in a Palestinian unity government, despite the threat of a boycott by the United States and Israel. Salam Fayyad met Palestinian Prime Minister Ismail Haniyeh of Hamas in the Gaza Strip and told reporters afterwards that he had accepted the post of minister of finance. Fayyad, who has previously served in the post, will be taking on a ministry cut off financially since the Islamist Hamas movement came to power in March. Palestinians hoped Fayyad's return to the helm would encourage Israel and Western powers to ease an economic boycott after Palestinian President Mahmoud Abbas's Fatah faction signed a power-sharing pact with Hamas earlier this month. But Israeli Prime Minister Ehud Olmert repeated on Wednesday the Jewish state would shun a Palestinian government that failed to renounce violence, recognise Israel and abide by existing peace deals as demanded by the Quartet of Middle East mediators. Although Olmert said at a news conference he would maintain contacts with Abbas, the Israeli leader brushed aside any resumption of serious peace talks through the Palestine Liberation Organisation, whose interim accords with Israel were rejected by Hamas.

ITN Source | February 23, 2007

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