*Friday, June 1, 2007
*Last modified Thursday, May 31, 2007 7:31 PM PDT


Norway resumes direct aid to Palestinian government with $10 million
transfer

By: Associated Press -

OSLO, Norway -- Norway resumed direct aid to the Palestinian administration
with a $10 million transfer, after it became the first Western country to
recognize the new Hamas-led coalition, the foreign minister said Thursday.

"We hope our contribution will help ease the social crisis the Palestinians
are now going through," said Foreign Minister Jonas Gahr Stoere. He said the
aid will be used to pay wages for civilian public servants.

The United States, the European Union and other countries cut off direct aid
to the Palestinian Authority last year after a government led by the Islamic
militant Hamas party, which is committed to the destruction of Israel, took
office.

Lack of aid spurred a Palestinian financial crisis, disrupting health care
and other government-funded programs and halting infrastructure projects.

Norway recognized a new coalition, which included Hamas and the moderate
Fatah party, when it took office in March, and earlier this month announced
it would resume direct aid.

"The critical situation in Gaza has many causes, but social need and
desperation draw in a negative directions," Stoere said. "It is especially
important for the Palestinian authorities to receive economic aid from the
international community."

Many Western countries have refused to recognize the new government until
Hamas renounces violence, recognizes Israel's right to exist, and accepts
previous peace agreements between the Palestinians and Israel.

*On the Net:*

http://www.government.no

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