Norway Gives $20m to Cash-strapped Palestinians

Norway today pledged $20m (£11.2m) in aid to the Palestinians, but said none of it would go directly to the Hamas government.

The Norwegian prime minister, Jens Stoltenberg, said his country would try to channel the money to the Palestinians through the UN or Norwegian non-profit organisations.

The pledge came during a one-day visit to Norway by the Palestinian president, Mahmoud Abbas, who is on a tour to try to persuade western governments to provide aid to the Palestinian Authority.

Mr Abbas called for an international conference to help set the stage for direct negotiations between the Palestinians and the Israelis.

He said the quartet of the UN, the EU, the US and Russia could play the role of broker and arbitrator in such talks.

"I am ready to immediately resume negotiations with the Israeli government," he said, adding that the Hamas-led government was not an obstacle to negotiations with Israel.

The Palestinian Authority has been strapped for cash since Hamas swept to a surprise victory in parliamentary elections in January.

The Palestinian government needs £75m a month, but funding from the US, Israel, the EU and Canada has been stopped because of Hamas' refusal to recognise Israel and renounce violence.

Hamas is on the EU and US lists of terrorist groups, meaning European and American officials are not allowed to deal directly with Hamas members.

In the past month, Iran and Russia have stepped in to plug the funding gap, with Tehran pledging $55.2m, but the aid-dependent economy of the Palestinian territories remains fragile.

Indonesia today urged foreign countries to continue to provide aid to the Palestinian government. During a visit to Saudi Arabia, the Indonesian president, Susilo Bambang Yudhoyono, said: "Give Hamas a chance to solve the Palestinian problem. Don't add to their problems by stopping aid."

Turkey has also criticised the EU's decision to cut off funding.

Norway, the second biggest donor to the Palestinians after the US, said it would deliver at least as much aid this year as last year if the Hamas regime fulfilled certain conditions.

"The support we will give them in 2006 will be equally big or bigger" than in 2005, the Norwegian foreign minister, Jonas Gahr Stoere, told reporters.

Norway last year gave $60m directly to Palestinian Authority and $195m to the United Nations relief and works agency which helps Palestinian refugees.

Norway has already given the Palestinian Authority $10m this year. The next instalment is due around mid-2006. Norway backs the view that the Palestinian Authority must take steps to comply with the quartet's demands to recognise Israel, renounce violence and accept previously signed agreements.