Palestinian talks on fund crisis fail

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Palestinian President Mahmoud Abbas and Prime Minister Ismail Haniyeh failed on Saturday to come up with a way to ease a financial crisis that threatens to bankrupt the Hamas-led government, officials said.

Abbas' adviser Nabil Abu Rdainah said after four hours of talks between the two that the Islamic militant group had not agreed to make policy changes toward Israel that could alleviate an aid freeze by the United States and Europe.

"To our great regret the international community is refusing to deal with us as a whole as long as the government does not change its position. And the people are paying the price," Abu Rdainah said, alluding to Hamas's refusal to accept past peace agreements with Israel or recognise the Jewish state.

"The president has been seeking to find the mechanism to end the financial crisis", Abu Rdainah said after the talks held in Gaza City. "But unfortunately a mechanism has not been reached and there are still obstacles."

Abbas and Haniyeh had met for the first time in a month in search of a way out of the crisis triggered when the United State and European Union froze direct aid to the Palestinian Authority after Hamas came to power over its policy toward Israel.


http://www.theage.com.au/news/World/Palestinian-talks-on-fund-crisis-fail/2006/05/07/1146940395605.html