Israel is preparing a wide array of punitive measures likely to be imposed next week after the inauguration of a Hamas-dominated Palestinian parliament, public television reported on Thursday.
The measures, which include a series of harsh economic sanctions, were due to be rubber-stamped yesterday by Acting Israeli Prime Minister Ehud Olmert at a meeting of his political and security chiefs, it said.
Earlier on Thursday, defense officials proposed an immediate freeze on the monthly transfer of tax duties owed to the Palestinian Authority, a figure running into millions of dollars and constituting around a third of the PA's budget.
"The idea is to put the Palestinians on a diet but not make them die of hunger," prime ministerial adviser Dov Weisglass said.
Israel is also expected to bar all Palestinians from travelling between the Gaza Strip and West Bank, and to prohibit the entry of any Gazans travelling to the Jewish state for work, public television reported.
Israeli Defense Minister Shaul Mofaz, who was due to attend yesterday's meeting, will also press for a complete freeze on all major construction projects in Gaza, where the airport is being rebuilt and construction of a deep-sea port is underway.
Plans to improve checkpoints between Israel and Gaza and the West Bank will also be put on hold, the television said.
Israeli authorities will likewise try to prevent any international funds from reaching the Palestinian Authority.
The government is mulling the option of removing the Palestinian territories from the so-called "customs envelope", a set up which ensures that goods entering Israel and the Palestinian territories are taxed only once, it said.
At present, no customs are imposed on goods leaving Gaza and the West Bank, but such a step could see Israel taxing all goods crossing its territory.
However, the defense ministry decided against any measures which would affect humanitarian aid reaching the Palestinians, or would involve cutting off water, electricity and medical supplies, according to the television.
An inaugural session of the Palestinian parliament is due to be held today, following Hamas's sweeping victory in elections last month.
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