Israel threatens hold on Palestinian money

? The Israeli government agreed Sunday to release $55 million in taxes and customs duties it withheld from the cash-strapped Palestinian Authority in the wake of Hamas’ victory in last month’s parliamentary elections.

But Israeli leaders warned that future transfers of the funds collected on behalf of the Palestinian Authority would hinge on the shape and tenor of the new Palestinian government. The money had been relayed automatically each month, under a long-standing economic agreement.

Hamas, a radical Islamic group sworn to Israel’s destruction, won the right to form a new Palestinian government after capturing a majority of legislative seats Jan. 25 from the long-dominant Fatah party of Palestinian Authority President Mahmoud Abbas.

Israel proceeded with the transfer, due last Wednesday, because “Hamas has not yet formed a government,” Foreign Ministry spokesman Mark Regev said. He said future transfers would no longer be automatic but would “depend on how things will develop on the other side.”

Israeli leaders have vowed to have no dealings with a Hamas-led government unless the group recognizes Israel, renounces violence and adheres to agreements in place between the Palestinians and Israel.

The Palestinian parliament is to convene Feb. 16, and Hamas leaders say they hope to form a government by month’s end.