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05-04-06, 23:54
The Palestinian prime minister has told the first meeting of his Hamas-led cabinet that the government is facing a deep financial crisis.
Ismail Haniya says his administration inherited a finance ministry that had no money left, yet had mounting debts.
He said the new leadership would do its best to pay the wages of more than 100,0000 Palestinian Authority workers.
Aid donors have threatened to cut funds to the PA if Hamas does not change its doctrine of non-recognition of Israel.
"We are making every effort to pay the government employees despite the financial crisis," Mr Haniya said.
"We inherited a situation in which we not only have no money in the treasury but a whole load of debts."
The meeting came as Foreign Minister Mahmoud Zahhar denied suggesting that Hamas was countenancing a two-state solution in a letter to the United Nations.
The AFP news agency published what it said were extracts from the letter.
"We look forward to live in peace and security and for our people to live a dignified life in freedom and independence, side by side with our neighbours in this sacred part of the world," the text says.
It goes on to say Israel's "illegal colonial policies... diminish any hopes for the achievement of settlement and people based on a two-state solution".
The two-state formula, enshrined in the international peace plan known as the roadmap, would see the establishment of an independent Palestinian state living in peace beside Israel.
Hamas, which denies Israel's legitimacy and refuses to follow a path of non-violence and adopt past peace deals, has always rejected this formula.
(...)
Ismail Haniya says his administration inherited a finance ministry that had no money left, yet had mounting debts.
He said the new leadership would do its best to pay the wages of more than 100,0000 Palestinian Authority workers.
Aid donors have threatened to cut funds to the PA if Hamas does not change its doctrine of non-recognition of Israel.
"We are making every effort to pay the government employees despite the financial crisis," Mr Haniya said.
"We inherited a situation in which we not only have no money in the treasury but a whole load of debts."
The meeting came as Foreign Minister Mahmoud Zahhar denied suggesting that Hamas was countenancing a two-state solution in a letter to the United Nations.
The AFP news agency published what it said were extracts from the letter.
"We look forward to live in peace and security and for our people to live a dignified life in freedom and independence, side by side with our neighbours in this sacred part of the world," the text says.
It goes on to say Israel's "illegal colonial policies... diminish any hopes for the achievement of settlement and people based on a two-state solution".
The two-state formula, enshrined in the international peace plan known as the roadmap, would see the establishment of an independent Palestinian state living in peace beside Israel.
Hamas, which denies Israel's legitimacy and refuses to follow a path of non-violence and adopt past peace deals, has always rejected this formula.
(...)