Israelis, Arabs Meeting to Shore Up Abbas

Egyptian Foreign Minister Ahmed Aboul Gheit, in a phone call to Israeli Foreign Minister Tzipi Livni on Saturday night, asked Israel to "act towards the Palestinian Authority in a way that achieves calm, and creates the atmosphere for resuming the peace process," Egypt's Foreign Ministry said in a statement.

Aboul Gheit asked for an easing of Israeli actions in the West Bank -- a halt to construction of Jewish settlements and its security barrier there, the removal of checkpoints and an end to raids into Palestinian towns.

Israel's military has blocked previous moves to ease barriers between the West Bank and Israel, calling the obstacles essential to protecting Israel from Palestinian attacks.

At Monday's summit, Olmert said, Israel plans to present "our expectations from the other side and demands for a fight against terror" by the Palestinian government. "At the same time, we will declare our intention to assist the new [Palestinian] government that is obligated to abide by the terms set out by the international community," Olmert said.

The Israeli cabinet decision approved the release of roughly half of the tax revenue Israel is holding, which totals at least $700 million. Israeli cabinet officials said the balance would be transferred gradually if Abbas showed progress disarming Palestinian militias and if his political standing benefits from the funds.

Palestinian officials expressed disappointment over the cabinet's decision, saying Israel should be doing far more to ensure that Hamas does not make inroads in the West Bank, where the Fatah movement still holds sway.

"We're not happy with this, although they promised it would be only the beginning," said Yasser Abed Rabbo, a senior adviser to Abbas. "We're back to the same old cycle of games. I don't know why they don't release all of it, and give this government the credit that it deserves."

Israel collects customs and value-added taxes on behalf of the Palestinians under an annex to the 1993 Oslo accords that sets out the economic relationship between Israel and the Palestinian Authority.

The estimated $55 million in monthly tax transfers accounts for nearly half the Palestinian Authority monthly payroll, and the freeze, coupled with an international aid embargo against the Hamas-led cabinet, has made it impossible for the government to fully pay salaries for more than a year.

Hamas is classified as a terrorist organization by the United States and the European Union, which along with Russia and the United Nations make up the so-called Quartet of peace mediators. The Quartet has demanded that any Palestinian government recognize Israel, renounce violence and abide by previously signed agreements with the Jewish state -- conditions two Hamas-led governments refused to meet.

In Gaza, Ismail Haniyeh of Hamas, removed by Abbas as prime minister, said Sunday that the summit would divide the Palestinians further. He demanded that some of the tax revenue Israel plans to release to Abbas be sent to Gaza, where Haniyeh continues running government ministries.

"The Americans won't give anything. Israel won't give us anything," Haniyeh said. "Our land, our nation will not come back to us except with steadfastness and resistance."

Wilson reported from Jerusalem.