The move comes as Foreign Minister Tzipi Livni and Vice Premier Shimon Peres prepare to leave for Sharm el-Sheikh, where they will be meeting with PA leader Mahmoud Abbas (Abu Mazen).



The move is also timed on the eve of Prime Minister Ehud Olmert’s departure for Washington, where he is scheduled to meet US President George W. Bush for the first time since his Kadima Party was elected. The meeting in Egypt with the senior PA official signals a major shift in policy. Mr. Olmert previously stated his administration would not meet with any senior PA officials until such time the Hamas-led government recognizes Israel’s right to exist, ceases terror attacks and disarms, and recognizes the legitimacy of agreements signed in the past between Israel and the PA.



Livni will be meeting with Abu Mazen, whose Fatah Party lost control of the PA to the now-ruling Hamas Party. Abu Mazen continues to call upon Israel to return to the negotiating table, promising Jerusalem that if the NIS 50 million is approved, the funds would not make their way to the Hamas-led government, which refuses to recognize the State of Israel.



In the meantime, as he prepares to depart for the US capital, Mr. Olmert has toned down his Convergence Plan, understanding the US administration is not prepared to come out in full support of additional unilateral Israeli policies. Bush and his senior administration members are calling upon Israel to move forward based on PA agreement and not creating additional unilateral facts on the ground vis-?-vis the PA. At present, the White House does not appear willing to undertake funding such as plan as well, leaving the prime minister with a void regarding the financing for such an undertaking.



Olmert does not enjoy the broad-based Knesset support as did his predecessor, Ariel Sharon, and he is not expected to benefit from a special relationship with the US president as did Mr. Sharon, who made frequent White House visits and was in close contact with Mr. Bush.