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Washington: The United States lifted its crippling aid embargo on the Palestinian government on Monday to bolster moderate President Mahmoud Abbas while isolating Hamas who control the Gaza Strip.
The resumption of direct American aid came on the eve of talks between President George W. Bush and Israeli Prime Minister Ehud Olmert, who has said he will cooperate with Abbas' emergency Cabinet.
Amid an outpouring of international support, Abbas told Bush in a telephone call on Monday that the time had arrived to resume peace talks with Israel. President Bush promised his support.
Hours later, Secretary of State Condoleezza Rice announced that the United States would "resume full assistance to the Palestinian government and normal government-to-government contacts."
At a news conference, Rice said the United States would contribute $40 million to help ease the suffering of Palestinians.
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