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Last Modified: 16 Jun 2007
By: Channel 4 News

The Americans say they are lifting a ban on direct aid to Palestinian President Mahmoud Abbas's new government in the West Bank.

The new administration, led by Prime Minister Salam Fayyad, was set up after the president sacked the Hamas-led government following the Islamist group's violent takeover of Gaza.

The Islamist group said it was hopeful the BBC journalist Alan Johnston, who was kidnapped in Gaza, could be released soon.

Fatah supporters have been trying to leave Gaza through the Erez crossing with Israel.

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