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This Week
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Israeli Dilemma
Fearing calamity and criticism, Israel begins
releasing Palestinian money.
GIL SEDAN
Jewish Telegraphic Agency
Jerusalem
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espite continuing terrorist
attacks, Israel is beginning
to release frozen Palestin-
ian tax funds to avert a
humanitarian disaster in the Palestin-
ian areas.
Given the Palestinian Authority's
record of abysmal financial manage-
ment — and rampant corruption —
some Israelis are questioning the wis-
dom of the move.
For months, Israel unsuccessfully
pressured the international community
to stop funding the Palestinian Au-
thority, arguing that the money was
being used to fund terrorism or would
free up other P.A. funds for that pur-
pose. This week, however, Israel re-
leased some $15 million to the Pales-
tinian Authority as a goodwill gesture
and a means of improving conditions
for the Palestinian population.
On Wednesday — the same day
that a terrorist bombing at Hebrew
University's Mt. Scopus campus killed at
least seven people and wounded more
than 80 — Palestinian Authority
Finance Minister Salam Fayed con-
firmed the money had been deposited in
the P.A.'s account at the Bank of Israel.
' Fayed denied Israeli claims that it
had set conditions on the transfer of
the funds.
"The Palestinian Authority refuses
any conditions to get any of our fro-
zen money from Israel. This money is
the Palestinian right," he said.
Ra'anan Gissin, an adviser to Israeli
Prime Minister Ariel Sharon, said Israel
doesn't want the money "to go to any
of the Palestinian institutions where the
money either goes into their pockets"
or goes to "finance organizations that
carry out terrorist attacks against us."
Facing severe international criticism
for the July 23 assassination of the mili-
tary leader of Hamas — in a bombing
raid that also killed at least 14 Palestinian
civilians — Sharon waived his condition
that a monitoring system with U.S. par-
ticipation be put in place to ensure that
released funds are used correctly.
Poor Conditions
The move came after the U.S. ambas-
sador to Israel, Daniel Kurtzer, warned
that the plight of Palestinian civilians
was becoming catastrophic.
After the Gaza debacle, it seemed,
Israel could ill afford international
condemnation for reports showing,
for example, a rise in malnutrition
among the Palestinian population.
Yet the move also comes amid reve-
lations, contained in official Palestin-
ian documents seized during an Israeli
incursion this spring, of the elaborate
mechanisms that Yasser Arafat and
other Palestinian officials used to
divert money from the P.A. budget to
terrorist, groups leading the attack on
Israel.
Among the ruses, according to
translations of the seized documents,
was a system under which terrorists
were appointed as assistants to official
Palestinian security forces so that their
salaries and operational expenses could
be paid from the budget.
In addition, according to reports in
the Israeli media, the Palestinian
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Israel To Deport
Terrorist's Relative
Jerusalem/JTA — Israel's Security
Cabinet approved the expulsion of a
Palestinian terrorist's relative from the
West Bank to the Gaza.Strip. The move
would be the first such deportation
since the outbreak of the Palestinian
uprising in September 2000.
The decision was made during a
meeting July 31 of the Security
Cabinet to discuss ways to combat sui-
cide bomb attacks. Attorney General
Elyakim Rubinstein recently said that
deportation of terrorists' relatives can
take place only if proof is found link-
ing them to terrorist activity. In this
case, the man met the criteria, Army
Radio reported.
Other measures approved by the
Security Cabinet included house dem-
olitions and withholding benefit pay-
ments if the family of the terrorist is
Israeli, Israel Radio reported.