Bush threatens to halt all aid to Palestinians

WASHINGTON -- President Bush said yesterday that the United States would cut aid to the Palestinian government unless Hamas abolishes the militant arm of its party and stops calling for the destruction of Israel.

''And if they don't, we won't deal with them," Bush said in an interview aired on ''The CBS Evening News."

''The aid packages won't go forward," the president said. ''That's their decision to make, but we won't be providing help to a government that wants to destroy our ally and friend."

The United States views the militant Islamic group Hamas as a terrorist organization, and if it takes control of the Palestinian government, as it appears likely, all US aid to the Palestinian people will be put under review, the Bush administration said.

''The law and our policies state that no money goes to terrorist organizations," said Sean McCormack, State Department press spokesman.

In Jerusalem, US consul general Jacob Walles said the United States would not deliver assistance to terror organizations, members of terror organizations, or ministries controlled by people belonging to terror organizations.

This year, the US government is providing $150 million in American assistance for Palestinian development and other needs, McCormack said. Another $84 million is distributed through the United Nations.

''The Palestinian people have humanitarian needs; they are a poor people," he said. But McCormack also said financial aid must be reviewed and said Secretary of State Condoleezza Rice would take this up when she meets in London on Monday with UN, European, and Russian officials.

Together, they form the so-called Quartet that developed a blueprint designed to steer Israel and the Palestinians into peace talks. But that process appears in peril with Hamas's strong showing and likely control of a future Palestinian government.

The toughest task facing the United States is determining whether the peace process can proceed, and if so, how. The administration would have to find a way to negotiate with the Palestinians without talking directly to Hamas, which has sworn to destroy Israel and has conducted numerous terrorist operations against that country.

On Capitol Hill, a nonbinding Senate resolution condemned Hamas and expressed support for halting assistance to the Palestinian government. The symbolic resolution, crafted by Senator John Thune, Republican of South Dakota, states that aid should be ended if the party controlling the Palestinian parliament advocates the destruction of Israel. It was unclear when the Senate would vote on the proposal.

In Tel Aviv yesterday, Israel's acting foreign minister, Tzipi Livni, appealed to the international community to isolate any future Hamas government, but refused to say what Israel might do.

For now, it appears Israel will hold off on drastic measures, such as sealing border crossings with Gaza or cutting off the monthly flow of tax rebates to the cash-starved Palestinian Authority. The new Palestinian government might not be formed for two months, giving Israel time to come up with a new policy.

Avi Dichter, former chief of the Shin Bet security service and a top official in Ehud Olmert's Kadima Party, said Israel must not be rash and must wait to see whether Hamas will abandon its violent ideology once it assumes power.