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E.U. cuts off aid to Hamas Government

BRUSSELS: The European Union has cut off direct aid payments to the Hamas-led Palestinian Government because of its refusal to renounce violence and recognise Israel, the E.U.'s executive office said on Friday.

A top Hamas legislator condemned the move, which came at a time of intensive manoeuvring among Palestinian leaders to find a way out of the new Government's isolation. One senior Hamas leader said on Friday the group is ready for a ``two-state'' solution with Israel, a softening in Hamas' position that would imply recognition of the Jewish state for the first time.

The official said Prime Minister Ismail Haniyeh, of Hamas, would discuss the idea with Palestinian President Mahmoud Abbas, a moderate, in a meeting in Gaza City later on Friday. The official spoke on condition of anonymity because the proposal has not yet been submitted.

It was not clear how developments in the Palestinian Authority might affect the E.U.'s decision, which was to be announced formally at a meeting of E.U. Foreign Ministers on Monday. On Friday, European Commission spokeswoman Emma Udwin said that, ``for the time being there are no payments to or through the Palestinian authority.''

``The E.U. will need to develop some new strategy, some new measures, some new decisions,'' Ms. Udwin added. — AP

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