JERUSALEM — Israeli Prime Minister Ehud Olmert agreed Saturday to release $100 million in frozen funds to Palestinian President Mahmoud Abbas and ease West Bank travel restrictions — goodwill gestures that revived hopes for a resumption of peace talks after years of hostility and distrust.
Olmert made the promises in a two-hour meeting with Abbas at the Israeli leader's official residence, the first Israeli-Palestinian summit in 22 months.
The meeting is a "first step toward rebuilding mutual trust and fruitful cooperation," Olmert's office said in a statement. More meetings are planned, said Palestinian negotiator Saeb Erekat.
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A key achievement for Abbas is the release of $100 million in funds frozen by Israel when Hamas came to power earlier this year. In addition, Israel will transfer 35 million shekels to Palestinian-run hospitals in Jerusalem, said Palestinian negotiator Saeb Erekat.
In disbursing the money, Abbas' office will increasingly take on the role of a shadow government. Hamas has been the target of an international aid boycott, and has had difficulty paying the salaries of 165,000 civil servants.
Olmert spokeswoman Miri Eisin said Israel plans to transfer the money soon, but that it wants to make sure the funds don't reach Hamas.
Israel also agreed to remove several roadblocks in the West Bank, Erekat said. In addition, Olmert promised to meet a quota of 400 trucks moving through the main cargo crossing between Gaza and Israel.
Stand by for more rockets falling on Israel: now they have money to build them. Stand by also for more kidnappings: it pays.
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