Subscribe to Print Edition | Tue., October 30, 2007 Cheshvan 18, 5768 | | Israel Time: 03:12 (EST+7)
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Israel allows money into Gaza Strip despite sanctions
By Amos Harel and Avi Issacharoff

Israel continues to allow money into the Gaza Strip from the West Bank despite increased sanctions, including fuel reductions, on the Strip. Israel agreed last week to another shipment of funds into Gaza via the Erez crossing.

Security forces said the money was intended for salaries Palestinian Authority Chairman Mahmoud Abbas has committed to paying.
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The tens of millions of shekels will pay tens of thousands of PA workers and Fatah activists' salaries. Hamas has thus far not blocked the transfer.

The Gaza Strip is experiencing a dwindle of shekels following the shutdown of some Israeli banks and the desire of others to stop activities in Gaza. Last week the Bank of Israel Governor Stanley Fischer asked Bank Hapoalim to postpone by two months its intention to stop activity in the Strip.

Finance Minister Roni Bar-On and his Egyptian counterpart, Youssef Boutros-Ghali, suggested at an International Monetary Fund meeting in Washington last week that Israel could transfer shekels to banks in Egypt for transfer to Gaza. This would address the concerns of Israeli banks that the funds they transfer would reach terror organizations.

However security officials said recently that they opposed the plan because they would lose all control over the transfers and the money would reach the terror organizations indirectly.

Fuel cuts begin

Israel began yesterday to decrease its fuel supply to the Gaza Strip as part of its policy to intensify sanctions against the Hamas government.

The plan to disrupt the electricity supply to Gaza has not yet been implemented in light of a petition to the High Court of Justice yesterday by the Arab-Israeli legal advocacy center Adalah against the disruption.

The Palestinian Fuel Authority in the Gaza Strip reported yesterday that the shortfall in fuel supplies was noticeable. According to the authority, the supply of diesel has been cut from a normal level of 350,000 liters per day to 200,000 liters. Similarly, the supply of gasoline, which normally stands at 150,000 liters per day, has dropped to about 90,000 liters. Ahmed Ali, deputy chairman of the Fuel Authority, told the press yesterday that shortages would be felt in a few days, since there was sufficient fuel in Gaza Strip storage for another four days. However, Palestinians joined long lines yesterday to stock up on fuel before the imminent shortages.

Dor Alon, the Israeli firm supplying fuel to the Palestinians, acknowledged it had cut down on diesel and gasoline to the Gaza Strip on instructions from the defense establishment.

Next week, another reduction will go into effect. The Sufa crossing in the southern Gaza Strip was also closed down yesterday for an unlimited period. The passage had been operating since the Hamas takeover of the Strip in June instead of the Karni crossing that was closed down due to terror alerts. Most of the merchandise moved to the Gaza Strip - about 100 to 120 truckloads a day went through the Sufa crossing.

Merchandise will now be able to enter the Gaza Strip only at Kerem Shalom, which has a much smaller capacity of up to 55 trucks a day.
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