U.S. to send urgent aid to Palestinians

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NEW YORK -- The United States agreed under pressure yesterday to the creation of a system to transfer funds for salaries and humanitarian assistance to the Palestinians -- a softening of its unbending effort to isolate Hamas.

Secretary of State Condoleezza Rice also announced a donation of $10 million in emergency medical assistance for residents of the Gaza Strip, where hospitals are reporting shortages of medical supplies because of the cutoff of aid to the Hamas-led Palestinian government.

As much as $4 million worth of supplies could be distributed as early as today, according to the State Department, with the remainder to be distributed through the United States Agency for International Development and the United Nations Children's Fund.

"The thrust of this is the international community is still trying to respond to the needs of the Palestinian people," said Miss Rice, who hours earlier had urged the world to maintain a hard line against Hamas.

The announcements followed a daylong meeting of the Middle East Quartet -- the United States, United Nations, European Union and Russia -- where several Arab leaders warned that the financial squeeze on the Palestinian Authority (PA) could lead to civil war.

Today, hours after the agreement to channel direct aid to the Palestinians, Hamas signaled it still had problems accepting Western demands on Israel.

"The Quartet have conditions. They aim to push the Palestinian government to make concessions that harm [Palestinian] rights and red lines and give the [Israeli] occupation legitimacy," said Palestinian Prime Minister Ismail Haniyeh.

Mr. Haniyeh, speaking to reporters in Gaza, did not elaborate but Palestinian Authority spokesman Ghazi Hamad said a statement would be issued later today in response to the Quartet's decision.

Hamas has largely abided by a cease-fire for more than a year but says talks with Israel would be a waste of time.

There have been armed clashes this week between followers of Hamas -- the militant Islamist group that controls the PA -- and its political rival Fatah. As a struggle over control of security forces intensified, fighting yesterday injured nine persons, including five children.