Khamenei Calls for Aid For Hamas-Led Government

The Wall Street Journal:

Iran's supreme leader called on Muslim nations Monday to provide annual financial aid to a Hamas-led Palestinian government and supported the radical group's refusal to recognize Israel. Hamas political leader Khaled Mashaal and other officials were in Iran -- a top backer of Hamas -- in the latest stop of a tour of Arab and Islamic nations aimed at drumming up support as Israel and the U.S. move to cut off money to the group.

"Annual financial assistance to Palestine is one way that Muslim nations can share the responsibility of Palestine," Iranian supreme leader Ayatollah Ali Khamenei said in talks with Mr. Mashaal, according to state-run television. READ MORE

Hamas won a landslide victory in Palestinian legislative elections last month and is now moving to form a government, rejecting Arab and international pressure to recognize Israel, renounce violence and abide by peace deals reached between the Palestinians and the Jewish state.

Mr. Khamenei urged Hamas to stick by its rejection and its insistence on the return of Palestinian refugees and the creation of a Palestinian state with Jerusalem as its capital. "Continuation of this stance and observing (these issues) as a red line is the only way for success," said Mr. Khamenei, who has the final say in all state matters in Iran.

He said aid from Islamic nations to the Palestinians will send a significant sign to the world and improve relations among Muslims. He praised Hamas's recent victory in the general elections as a "divine sweet surprise." Israel and the U.S., which consider Hamas a terrorist group, accuse Iran of giving financial and material support to Hamas, though Tehran insists it only gives moral backing.

Mr. Mashaal, heading a Palestinian delegation, arrived in Tehran on Sunday for a two-day visit. He is to meet Iranian leaders including President Mahmoud Ahmadinejad, who provoked international condemnation last year by calling for Israel to be "wiped off the map." In December, during Mr. Mashaal's last visit to Tehran, he supported Iran's hard-line stance against Israel saying that Hamas and Iran formed a united front against Israel.

Israel Halts Transfers of Tax Money

On Sunday, Israel branded the Palestinian government a "terrorist authority" and halted the transfer of hundreds of millions of dollars in tax money after Hamas took control of the Palestinian parliament. But the Israeli government held off on adopting even more drastic measures recommended by security officials, mindful of possible international reaction.

The sanctions came as the Palestinian militant group worked to consolidate its power and form a government, nominating one of its more pragmatic leaders, Ismail Haniyeh, to be the new prime minister. Mr. Haniyeh said Hamas would begin talks with possible coalition partners Monday.

The Islamic group, which calls for the destruction of Israel and has carried out scores of deadly suicide bombings against Israelis, trounced the corruption-riddled Fatah Party in Jan. 25 elections, winning 74 of 132 parliament seats. Israel and Western countries demanded the group renounce violence and recognize Israel's right to exist, but Hamas resisted pressure to moderate. The group took control of the Palestinian legislature when the new parliament was sworn in Saturday.

"The PA is -- in practice -- becoming a terrorist authority," acting Israeli Prime Minister Ehud Olmert told his cabinet Sunday. "Israel will not hold contacts with a government in which Hamas takes part."

The cabinet decided to stop the transfer of the roughly $55 million a month it collects in taxes and tariffs on behalf of the Palestinian Authority. The order did not specify when the payments would stop, but government spokesman Asaf Shariv said the next payment, scheduled for early March, "won't take place."

Army Radio quoted Defense Minister Shaul Mofaz saying the cutoff would be reviewed each month. The Palestinian Authority relies on that money to help pay the salaries of roughly 140,000 government employees, including about 57,000 in the security forces.