ARAB AFFAIRS - Feb 20 - Egypt's Islamists Call For Donations To Assist Hamas.

Egypt's Muslim Brotherhood launches a campaign to raise funds for a Hamas-led PA in light of Israeli sanctions and threats by the US and EU to suspend direct aid to the PA. The deputy leader of the Brotherhood Mohammad Habib, told the FT that the movement, which gave birth to Islamist movements worldwide, was calling on individuals in the Islamic world to channel donations through the Arab League, the Red Crescent and other relief agencies. He hoped donations would help meet $100m monthly running costs of the PA and would tide Hamas over for at least six months, after Israel suspended customs payments to the Palestinians. Mohammad Hilal, another Brotherhood leader, told the independent al Masry al Youm newspaper that members were ready to contribute a quarter of their monthly earnings or more. The Brotherhood's fundraising efforts coincided with a meeting of Arab FMs in Algiers in which commitments made last year to provide $55m monthly to the PA were discussed. Arab funding to the Palestinians has been patchy in the past. "Some countries paid, some didn't", said Hisham Youssef, chief of staff to AMoussa, Arab League's Sec Gen. "The irony is that this is assistance was pledged to moderates. We will see how things evolve now the Palestinians' needs will be greater". Arab governments were caught off guard by the Hamas victory in January's Palestinian elections and are now in a quandary amid US, EU and Israeli pressure on Hamas to recognise Israel and renounce violence. Some Arab officials have told Hamas that before funding flows, the government Hamas forms must implicitly back a two-state solution by at least subscribing to the 2002 Arab Peace Initiative. This offers an end to the Arab-Israeli conflict in return for Israel's withdrawal to pre-1967 borders. At the same time, Arab officials are concerned that US, EU and Israeli threats to starve Hamas of funds may strengthen rather than weaken the movement and will drive the Palestinians towards radical sponsors. Pres Hosni Mubarak of Egypt has looked particularly awkward when urging the West not to punish the Palestinians for voting in Hamas, while he continues to proscribe its parent organisation, the Brotherhood.