They almost had me fooled. Actually, no, they didn't.

I posted a few months back about my opinions on Israeli 'confidence building measures' toward the PA in the light of its intransigence, continued support of terrorism, etc... and the utter illogicality of rewarding Palestinian misbehavior with further concessions. These included $100 million in withheld tax revenue that Israel transferred to Abbas a few months ago, despite the presence of a terrorist group in charge of the PA government and little knowledge of how it would be spent other than vague 'humanitarian' arguments.

Now Ha'aretz reports that it went to pay the salaries of terrorists.

Hamas: Our forces paid from tax revenue transferred by Israel
By Reuters

A Hamas source said Tuesday that part of the $100 million in tax revenues transferred by Israel to Palestinian Authority Chairman Mahmoud Abbas went to pay security services, including members of a Hamas-led force.

"The [Hamas] Executive Force was a part of the security services which received part of their salaries, just like the other forces," the source said.

During his meeting with Abbas on Sunday, Prime Minister Ehud Olmert asked him to account for how the revenues had been spent.

Israel opposed using the money to pay salaries, particularly to members of Hamas, whose charter calls for the destruction of Israel, government officials said.
...
"This flies in the face on what was agreed upon," said an Israeli government official.

Under U.S. pressure, Israel transferred the $100 million to Abbas's office in January.

Israeli officials said at the time that the money would be earmarked for humanitarian needs and programs to strengthen Abbas's guard, and not to pay salaries.
...
Western powers have also frozen direct aid to the Hamas-led government, conditioning a resumption of funds on recognition of Israel, renunciation of violence and an agreement to abide by previous peace deals. Hamas has rejected these terms.

I rest my case.