Jerusalem (AP) The Israeli Cabinet on Sunday approved a halt in monthly transfers of tens of millions of dollars to the Palestinians, Israeli officials said, in the first response to Hamas' assumption of control of the Palestinian parliament.
Israel collects and transfers about $50 million ($42.2 million) in tax money for the Palestinians each month. The money is essential for the Palestinian Authority to meet its monthly payroll for about 140,000 workers.
The ministers also urged the international community to withhold most aid to the Palestinian Authority, though it said humanitarian assistance should continue. But they stopped short of more drastic measures, including sealing off the Gaza Strip, favored by security officials.
Abdel Aziz Duaik, a Hamas legislator and the new parliament speaker, called on Israel to reconsider its decision, saying it was motivated by electioneering ahead of Israel's March 28 national election.
«This is a faulty decison, and the Israelis must reconsider their decision,» he said. «It will only increase hatred.»
Acting Prime Minister Ehud Olmert rules out contacts with Hamas government, but says humanitarian aid to Palestinians will continue.