Mideast 'Quartet' Warns Hamas

(CBS/AP)  The United States, the European Union, Russia and the United Nations warned the Hamas-led Palestinian government Thursday that it must recognize Israel and seek peace talks if it wants to be guaranteed continued aid.

"The Quartet concurred that there inevitably will be an effect on direct assistance to that government and its ministries" if those conditions are not met, the four mediators for Middle East peace said in a statement.

The new Palestinian government led by the Islamic militant group began work Thursday, reports CBS News correspondent Robert Berger (audio), already facing major challenges: namely, western isolation and a shortage of cash.

As soon as the government was sworn in Wednesday, the U.S. cut off contacts with the Palestinian Authority, and Canada suspended aid. Israel had already cut off $50 million dollars in monthly tax payments.

Hamas does not have the money to pay the salaries of 140,000 government employees that are due in few days.

In other developments:

Newly installed Palestinian Foreign Minister Mahmoud Zahar said the United States is biased toward Israel, guilty of crimes against Muslims and Arabs and is widening the rift with the Middle East. Zahar, considered one of the more hard-line officials in the Palestinians' new Hamas-led government, also said Hamas has no plans to negotiate with Israel.

Former Israeli Prime Minister Benjamin Netanyahu is taking the heat for the collapse of his Likud party in the Israeli elections this week, reports Berger (audio). With the once-ruling Likud plunging to just 11 seats in the 120-member parliament, his opponents are demanding his resignation.

The Quartet called in its statement on the new government "to commit to the principles of nonviolence, recognition of Israel, and acceptance of previous agreements and obligations."

That includes the internationally backed "roadmap" for peace, drafted by the quartet group, meant to draw up a final peace accord between the two sides.

"The Quartet recalled its view that future assistance to any new government would be reviewed by donors against that government's commitment to the principles" it had set out, the statement said.

After assessing the new government program, the four "noted with grave concern that the new government has not committed to the principles spelled out" earlier this year.

Zahar hinted that any country that shuns Hamas will be considered "an enemy of the Palestinian people" and he warned foreign ministry employees not to talk to them.

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