The US ordered its diplomats and contractors on Wednesday to cut off contacts with Palestinian ministries after a Hamas-led government was sworn in, the State Department said.
At the same time, US President George W. Bush expressed support for the Palestinian people but repeated his position that no US funds should go to the Hamas leadership they elected.
"I think that aid should go to suffering Palestinians, but nor should it go to a government, however, which has expressed its desire to destroy its neighbor," Bush said during a question-and-answer session after he delivered a speech on Iraq.
Hamas is formally committed to the destruction of Israel and is classed by the US government as a terrorist organization. It won a landslide victory in Palestinian parliamentary elections in January.
Democracy
"We support the election process, we support democracy, but that doesn't mean we have to support governments that get elected as a result of democracy," Bush said.
"I weep about the suffering of the Palestinians," Bush said, but added the Hamas-led government had to make a choice.
The US hopes to isolate Hamas and pressure it to recognize Israel, renounce violence and abide by peace accords.
So far, the Islamic militant group has refused, although its leaders have said they would continue to observe a ceasefire with Israel.
A directive, distributed to US diplomats and other officials in the region by e-mail, instructed them with immediate effect not to have contacts with Hamas-appointed government ministers or those who work for them, whether they are members of the group or not, officials said.
"We will not have contact with members of Hamas, no matter what title they may have," said State Department spokesman Sean McCormack.
He said the directive was intended to ensure that US diplomats and officials around the world knew how to deal with Palestinian officials with whom they might come into contact.
McCormack said the US would also examine its contacts with the Palestinian Authority and Palestinian diplomats around the world.
The no-contact policy was more sweeping than many had expected because it applies not just to Hamas members but to independents and technocrats in the new government.
The cutoff could affect a wide range of US programs, including security coordination with the Interior Ministry, officials said.
Contacts will still be permitted with President Mahmoud Abbas, his office and non-Hamas members of the Palestinian parliament, officials said.
The policy took effect when Abbas swore in a Hamas government at a ceremony in Gaza. While Hamas' 24-member Cabinet is dominated by party loyalists, it includes a few independents.
Canadian suspension
Canada also said on Wednesday it was suspending assistance to the Palestinian Authority because the new Hamas-led government refuses to renounce violence and recognize Israel. Hamas responded that Ottawa's decision was hasty and unfair.
"The stated platform of this government has not addressed the concerns raised by Canada and others concerning nonviolence, the recognition of Israel, and acceptance of previous agreements and obligations, including the roadmap for peace," Canadian Minister of Foreign Affairs Peter MacKay said.
"As a result, Canada will have no contact with the members of the Hamas Cabinet and is suspending assistance to the Palestinian Authority," he said.
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