January 31, 2006	Tuesday	Muharram 1, 1427

RIYADH, Jan 30: US ally Saudi Arabia believes militant group Hamas should moderate its stance towards Israel, but its victory in Palestinian polls could create pressure for more Saudi funding, officials and analysts say.

Bowing to pressure from the United States, Israel’s chief ally, Saudi Arabia has sharply reduced its direct funding for the Palestinian Islamist group, which swept to victory last week over the Fatah group which has dominated peace talks since 1993.

Riyadh officially says it funds only the Palestinian Authority.

A Saudi cabinet statement issued on Monday said the international community should accept the results and pressure Israel to make peace.

But a Saudi official said Hamas, which has carried out nearly 60 suicide bombings in Israel since Palestinians launched an uprising against Israeli occupation in 2000, would have to “meet the obligations of peace”. “It’s a democratic process that brought in a group of people who hopefully will have to adjust their direction and rhetoric in order to meet the obligations of peace,” he told Reuters.

Saudi funding for the Palestinian Authority would continue in accordance with international norms, he said.

“We are guided by the United Nations. We don’t give money to any group, just the Authority. It’s all transparent,” he said.

Abdullah al-Askar, a columnist in the leading government-backed daily al-Riyadh, said: “If Hamas changes its policy and political rhetoric, it will find a way to work with the world.”

But a Saudi security report recently presented to the authorities said Riyadh could find itself under pressure to increase its support for a Hamas-run Palestinian Authority (PA).

“A victory by Hamas presents a challenge to Saudi Arabia in that this financial support will likely need to be increased if the United States and Europe reduce or refuse to support a Hamas-controlled Palestinian government,” it said.—Reuters