GAZA CITY - Dismissed Hamas prime minister Ismail Haniya slammed Israel's decision Sunday to release tax arrears to the Palestinian leadership in the West Bank, saying the money belonged to all Palestinians.
"The funds that have been unblocked are a right for all Palestinians," Haniya said in a speech in Gaza City. "They are our right. This money should not be used for blackmail but should be paid to all Palestinians."
The withholding of the tax receipts collected by Israel on the Palestinians' behalf hamstrung successive Hamas-led governments during the 15 months that the Islamists held power, leaving them largely unable to pay their own staff or contractors.
The Israeli government approved in principle Sunday the release of the money as part of measures to boost moderate Palestinian president Mahmud Abbas following Hamas's seizure of the Gaza Strip earlier this month.
The move came as Israeli Prime Minister Ehud Olmert prepared to head to a summit in the Sinai resort of Sharm al-Sheikh on Monday with Abbas and the leaders of Egypt and Jordan aimed at working together to isolate Hamas.
Haniya called on Palestinians "not to have the wool pulled over their eyes and be deceived by the mirages of the Americans and Israelis who will never give our people their rights."
"The Americans and the Israelis will never give us anything," he said. "Only resistance and steadfastness will deliver us our land and our nation."
But Haniya rejected any suggestion that Hamas wanted to set up a breakaway administration.
The Gaza Strip is an "indivisible part of the (Palestinian) nation," he said.
"People keep talking about 'Hamastan' and the establishment of an Islamic emirate in Gaza but that's just Israeli propaganda."
He reiterated that he was ready to reopen dialogue with Abbas.
"There is no alternative to dialogue, there is no alternative to national unity," he said, calling on the Palestinian president to respect "all legitimate instituions, both the government and parliament."
06/24/2007 16:45 GMT