Palestinians gave a muted welcome today to an international emergency aid plan which bypasses the Hamas-led government.
"We hope for an expeditious implementation," Palestinian chief negotiator Saeb Erekat said, after President Mahmoud Abbas called the "temporary mechanism" a good step but inadequate.
Under the plan agreed by the United States, European Union, United Nations and Russia yesterday, money would flow by early July to cover Palestinian health and utilities costs.
But a crippling overall funds freeze, imposed by international donors after Hamas, an Islamic militant group dedicated to Israel's destruction, came to power in March, will remain in place.
Some 165,000 Palestinian government employees have gone unpaid for the past three months.
Hardship has deepened in the occupied West Bank and in Gaza amid inter-factional violence, raising international fears of a plunge into total chaos.
Hamas, which won election in January, has refused to meet US, EU and Israeli demands to recognise the Jewish state, renounce violence and accept past interim peace deals.
The temporary aid, bypassing the Hamas administration, will provide essential supplies to the health sector and payments to health-care service providers, utilities including fuel, and cash allowances to meet the basic needs of the poorest sections of the population.
An EU spokeswoman said the Commission had proposed providing €100 million for the programme. The international peace brokers, known as the Quartet, said they hoped Israel also would contribute.
Israel has been withholding tax revenue transfers, about €43 million a month, to the Palestinian Authority since Hamas took office.
"We hope the international community will help us by releasing Israeli-withheld funds. This is the key to avoiding a human catastrophe," Mr Erekat said.
Israeli Foreign Ministry spokesman Mark Regev said Israel would have no comment on the aid plan until it is formally presented by EU External Relations Commissioner Benita Ferrero-Waldner during a visit to Jerusalem tomorrow.
But he said: "Israel supports international efforts to directly support the Palestinian people that bypass the Hamas government. From our point of view, international aid is desirable, but we don't want to see aid strengthening or giving legitimacy to the Hamas government."