In the initial letter of warning sent by Shurat HaDin on behalf of victims of Hamas terror attacks to the PMO [Prime Minister's Office], Attorney Nitsana Darshan-Leitner wrote: "The currency of record in the Gaza Strip is the New Israeli Shekel (NIS)." Most of the financial activity in the Gaza Strip runs on a cash basis, using the NIS. Tens of thousands of Hamas terrorists and governmental official get their salary in Israeli currency -- in cash. Thus, the transfer of large sums of cash into the Gaza Strip is, by definition, an act that directly fuels the terrorist activity of Hamas and is therefore a violation of the Terror-Funding Act of 2005 and the domestic and international laws against money laundering."Read the whole thing.
The warning letters from Shurat HaDin also note that a portion of the cash funneled into Gaza by Israel is used to replace Israeli currency in Hamas' coffers that has physically deteriorated and another portion serves the international money laundering trade, most notably the money "smuggled" by Hamas from Iran via the Egyptian border. Without these criminal acts, Hamas' financial hold on the Strip would collapse and thus these measures are directly responsible for shoring up the Hamas control over Gaza and its continued terrorist activity launched from the region.
The PMO's letter reveals for the first time, that the Israeli government allows and encourages the financial support for the Hamas government in the Gaza Strip - knowingly and willingly. In reaction to the PMO's letter Attorney Nitsana Darshan-Leitner stated that "the government of Israel cannot fight against the Hamas terrorist organization with one hand, and continue to secretly finance it with the other. Hypocritically, the Prime Minister demands governments around the world isolate and and embargo the Hamas terrorists in Gaza, and stop transferring funds to them while at the same time he authorizes the transfer of Israeli currency into the hands of the enemy. This government claims to be fighting against the smuggling of tens of millions of dollars and euro into the Gaza Strip via the Egyptian border, all the while participating in the laundering of this money by exchanging them for New Israeli Shekels."[emphasis added]
Technorati Tag: Israel and Olmert.
Seems like a very large leap of logic. What currency would one naturally expect to flow into Gaza? The Thai baht?
North Korea and Cuba both have substantial dollar reserves, but that does not make George W. Bush a Communist sympathizer. Currency flows wherever its demand takes it.
If Israel is hiring people to do anything in Gazam, of course it will pay them, they are not slaves. The issue here is not whether the hard-currency shekel will replace Hamas scrip, but whether the State of Israel should be trying to get anyone in Gaza to do anything. If so, it will pay for services rendered, and that currency will circulate. Period.
Perhaps I am missing a big point here - entirely possible - but this seems like Economics 101 or perhaps 102 at most.
Posted by: Bruce at June 27, 2008 1:00 PMOh, and I forgot to say, cheers and good will to all, even to Laura! ;-)
Posted by: Bruce at June 27, 2008 1:01 PM"North Korea and Cuba both have substantial dollar reserves, but that does not make George W. Bush a Communist sympathizer. Currency flows wherever its demand takes it."
Yes it does, but against one's enemy one can freeze assets--one of the reasons Iran recently hurried to withdraw $75 billion out of Europe.
There are economic options to avoid single-handedly financing terrorists.
Olmert is not pursuing them.
What do you mean by "even" Laura?
Posted by: Laura at June 27, 2008 9:29 PM