Israel called a permanent halt on Sunday to its monthly transfer of funds to the Palestinian Authority but settled for a watered-down package of other sanctions after a Hamas-led Palestinian parliament was sworn in.At its weekly meeting, interim Prime Minister Ehud Olmert’s cabinet appeared to bow to US calls to avoid adding to Palestinian hardship, deciding against tough measures Israeli Defence officials proposed to try to weaken Hamas.They had included a ban on the entry of Palestinian workers into Israel—several thousand are allowed in daily—and a tightening of restrictions on the movement of Palestinians between the Gaza Strip and the occupied West Bank.The cabinet announced a permanent halt to the monthly transfer of about $50 million in tax revenues Israel collects on behalf of the Palestinians each month. Meanwhile, the head of the Arab League said member governments would meet this week to plan out how to send millions of dollars a month to the Palestinians to keep the new Hamas-led government afloat.
