WASHINGTON, Dec 22: US President George W. Bush signed a law on Thursday banning US aid to Hamas, aiming to isolate the group which controls the Palestinian government but refuses to recognise Israel.

The “Palestinian Anti-Terrorism Act of 2006,” Bush said in a statement, is “designed to promote the development of democratic institutions in areas under the administrative control of the Palestinian Authority.”

The law declares it the policy of the United States to avoid any contact with Hamas and other organisations Washington has labelled terrorist until they recognise Israel’s right to exist, renounce terrorism, dismantle their militias and recognise and abide by previous agreements and understandings between Israel and the Palestine Liberation Organisation and the Palestinian Authority.

While the text cites aid to the Palestinian Authority, it is targeted at Hamas, which won control of the authority in March 2006 following elections.

It allows aid to continue to activities of Palestinian Authority President Mahmud Abbas, whose Fatah group has been in street battles with Hamas activists for the past two weeks.

Washington wants to push Hamas into accepting Israel’s right to exist as a basis for the “roadmap” plan for peace between the two sides.

“This legislation reflects our continued concern over the failure of the current government to renounce violence and terror, recognise Israel, and respect its previous agreements and obligations,” said a senior administration official.

However, the official said current assistance programmes to the Palestinian people would not be affected by the law.—AFP