MIDDLE EAST: With the Bush administration barring Americans from having business dealings with the Hamas-led Palestinian Authority, Palestinian prime minister Ismail Haniyeh vowed yesterday that financial pressure from an "unholy alliance" led by the US would not bring down his government.
According to a US treasury department document, violators of the ban could face sanctions. However, the document says exceptions are being made for the World Bank, the International Monetary Fund, and UN aid agencies, which have been authorised to engage in "activities and transactions" with the Palestinian Authority.
In Gaza yesterday tens of thousands of Hamas supporters poured on to the streets after Friday prayers to attend Hamas-sponsored rallies protesting aid cuts by the European Union and the US.
Asserting that the Palestinian people were prepared to make personal sacrifices to keep Hamas in power, Mr Haniyeh said: "We will eat cooking oil and olives."
Mr Haniyeh said the consequences of bringing down the current government would be "grave". He suggested that the Islamic militant group would be able to prevent any other government from forming to replace Hamas, which took power last month after winning parliamentary elections in January.
Hamas leader and lawmaker Younis al-Astal said the collapse of the current government could prompt the group to resume a suicide bombing campaign against Israel.
Washington and the EU cut aid to the Hamas-led government because it has not renounced violence, recognised Israel or agreed to abide by interim peace deals. Without Arab aid, Hamas officials said the Palestinian economy could collapse.
Israel, which has frozen vital tax revenue transfers to the Palestinian Authority, said Hamas has only itself to blame. "If it acts outside international norms, if it acts outside accepted international behaviour, then it can't be surprised if the international community starts to treat it like a pariah," said Mark Regev, Israeli foreign ministry spokesman.
But Mr Haniyeh said the US and Israel were mistaken if they thought the newly sworn in government would fall in four to six weeks because of western aid cuts. "This government will continue for the full four years," Mr Haniyeh told thousands of cheering supporters at Jabalya, Gaza's biggest refugee camp.
Hamas has largely abided by a year-old ceasefire. "Bringing down the government will mean the return for the policy of martyrdom operations and car bombs," Mr al-Astal told 10,000 Hamas supporters in southern Gaza.