Israel to resume fund transfers to Palestinians

Israel said Wednesday it will resume sending millions of dollars in customs duties to the Palestinian Authority, nearly a month after it froze transfers over the Palestinians' admission to UNESCO. "Prime Minister Benjamin Netanyahu approved the renewal of the transfer of tax monies, for the time being, to the Palestinian Authority," the Israeli leader's office said in a statement.
"The decision was taken at the conclusion of the meeting of the ministers of the Forum of Eight in the wake of the cessation of unilateral steps by the Palestinian Authority," it said. "In the event that the Palestinian Authority resumes taking unilateral steps, the transfer of funds will be reviewed." The fund transfers were halted after Palestinian president Mahmud Abbas successfully secured Palestinian membership in the UN cultural agency UNESCO last month, over objections from Israel and Washington.
The victory came after he submitted a bid to join the United Nations as a full member, a request still being examined but likely to fail because of a US veto at the Security Council. Israel's reference to the "cessation of unilateral steps" came despite Abbas's insistence in recent weeks that he remains committed to the UN bid, which the Jewish state has decried as way to avoid negotiations. The Palestinians have said, however, that they are not currently seeking membership in any other UN agencies after UNESCO admitted them on October 30, prompting the Israeli freeze on the fund transfers the next day.
Netanyahu's inner cabinet has since met several times to discuss releasing the funds, but opposition from ministers including hawkish Foreign Minister Avigdor Lieberman has kept the freeze in place. Public radio reported that Lieberman was the sole member of the Forum of Eight on Wednesday to vote against releasing the money.
Lieberman has said he opposes the release in part because Abbas's secular Fatah movement is moving ahead with the implementation of a reconciliation agreement with Islamist rival Hamas. Army radio, citing sources at the Forum, said ministers would reconsider the transfers if the Palestinians renewed their UN bid, if Hamas became involved in Palestinian policy or if the funds were channelled to "terror activity."