Straw looks for Hamas funding agreement

Jack Straw has urged the Hamas-led Palestinian Authority to end its support for terrorism so the EU can resume its funding for the administration.

The foreign secretary said the UK and the EU wanted to restore the direct aid programme for Palestine, which was suspended last week, but Hamas must take steps to meet international obligations.

Hamas should first end its support for terrorism, recognise Israel's existence and respect agreements made by the previous Fatah-led administration, he said.

Straw was visiting Saudi Arabia for the annual 'two kingdoms' conference' in Riyadh.

A delegation from Hamas was also in Saudi Arabia this week seeking financial support to fill the shortfall left by the suspension of EU aid.

But Straw said it was a matter for the Saudis whether they chose to back Hamas.

And he added that the scale of EU funding, totalling around £350m annually, meant that it was unlikely to be fully replaced by resources raised elsewhere in the region.

Speaking on Radio 4's Today programme, Straw said the suspension of EU funding for the Palestinian Authority was "to secure some change of approach by that authority".

"It is our hope that we can resume the funding of the PA. That is also the hope of the European Union.

"But there has to be some movement by the new Palestinian government and some recognition that, with the power of government which they now have, go responsibilities."

Straw said the EU had no intention of "punishing" the Palestinians for their democratic decision to elect a Hamas government.

Around half of the EU's aid to the Palestinian people goes through UN agencies and non-governmental organisations in the region and this funding has not been suspended.

Straw said the government was looking at ways it could ensure the other half of the funding "can safely go to the purposes intended".