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By Robert Berger
Jerusalem
29 January 2006
Israel and Germany are considering withholding1 economic aid from the Palestinians, following the Islamic militant2 group Hamas' stunning3 victory in Palestinian parliamentary elections last week. The two countries say Hamas should be shunned4 as a terrorist organization.
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Acting5 Israeli Prime Minister Ehud Olmert, left, and German Chancellor6 Angela Merkel, right
At a meeting in Jerusalem, the leaders of Israel and Germany agreed that there should be no contacts with a Palestinian government headed by Hamas. German Chancellor Angela Merkel is the first world leader to visit the region since the Hamas victory. She said there will be an economic price to pay by Hamas unless the group recognizes Israel and renounces7 violence.
Ms. Merkel said it is "unthinkable" for Germany and the European Union to give financial support to a Hamas-led Palestinian Authority.
That would be a major blow because Europe is the biggest donor8 to the Palestinians, giving $615 million in aid last year. The U.S. has said that it, too, would cut off aid to a Hamas government.
Acting Prime Minister Ehud Olmert said Israel would stop the monthly transfer of $10 million in tax rebates9 and other funds to the Palestinian Authority if a Hamas government is installed.
"Germany and Israel will not negotiate with terrorist groups," Mr. Olmert said.
Hamas has rejected international demands to disarm10 and revoke11 its charter calling for the destruction of Israel. Hamas leaders describe international threats to cut off aid as "blackmail12."
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