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During an Israeli cabinet meeting on Sunday, Israeli interim Prime Minister Ehud Olmert said that the Palestinian Authority was a ?terrorist authority,? now that Hamas had taken charge. "It is clear that given the Hamas majority in the Palestinian parliament and the fact that the role of forming a government has been given to Hamas, the Palestinian Authority is effectively becoming a terrorist authority," Olmert made the comments during a Parliament meeting called to discuss Israel?s policy in relation to the newly appointed authority. In his strongest comments to date, Olmert suggested imposing some serious economic sanctions against the Palestinians.
Referring to the $50 million in taxes and customs duties Israel collects monthly on behalf of the Palestinians, Olmert said ?Israel will not hold contacts with a government that Hamas is part of as we announced immediately after the Palestinian elections ... Israel is stopping forthwith the transfer of funds to the Palestinian Authority." Palestinian labourers may be banned from entering Israel and wide ranging blockade of Palestinian exports was suggested. Stressing that the Israeli government would not ?compromise with terror? Olmert went on to say that there would be no government contact whilst Hamas remained in charge. Hamas won a sweeping victory in 25 January Palestinian elections over the long ruling Fatah party of President Mahmoud Abbas.
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