Prime Minister Stephen Harper will announce an immediate $8 million in funding for the Palestinian Authority on Thursday, with another $22 million coming soon after, The Canadian Press has learned.
The aid offer comes with a private exhortation to the Palestinians to do something about corruption that has eroded public confidence, according to federal government sources.
Harper will use the visit by the king of Jordan on Thursday to announce he is lifting the freeze on funding to Mahmoud Abbas' Palestinian Authority.
Canada became one of the first countries in the world to cut off funding to Hamas after the Fatah rivals were elected to lead the Palestinian Authority last year.
One of Harper's first acts as prime minister was the immediate halt of aid, which had reached $35 million in 2005.
Hamas is considered a terrorist group by numerous western countries because of its long campaign of suicide bombings inside Israel that has targeted civilians.
Several of those countries followed Canada's lead in ending aid programs for the Palestinians after the Hamas victory 18 months ago.
Harper carefully considered his options before deciding to pour money back into the Palestinian territories, government sources said.
One of those who convinced him to do so was former British prime minister Tony Blair, who was consulted by the government on the matter last week after he assumed his new responsibilities as international envoy to the Middle East, CP reported.
King Abdullah of Jordan is meeting with Harper during a two-day visit to Ottawa. The ruler is trying to drum up international support for Abbas, who recently fired Hamas from the government and formed a new cabinet after bloody fighting between the Islamic militants and Abbas supporters in Gaza.
In an interview with The Globe and Mail, King Abdullah said the West needs to "wake up" and understand that without a quick and fair solution to the Israeli-Palestinian conflict, the world is headed toward decades of more bloodshed and extremism.
He said Western leaders need to understand that the Palestinian issue is the root of many of the crises plaguing the Middle East, including the anti-U.S. insurgency in Iraq and Iran's rise as a powerful and threatening nation.
Canada is reportedly anxious to assist the efforts of King Abdullah, who is seen by the government as a voice of moderation in the region. Jordan is one of the few Arab countries that officially recognizes Israel.
The Jordanian ruler has been trying to help gain support for Abbas since he dismissed Ismail Haniya as prime minister after the Hamas takeover of Gaza.
The Jordanian and Egyptian foreign ministers will travel to Jerusalem over the next two days to represent the Arab League in talks about the Arab peace plan.
The plan would trade full Arab recognition of Israel for an Israeli withdrawal from all lands captured in the 1967 Middle East war and the creation of a Palestinian state.
With files from The Canadian Press
