Haneya told reporters in the Gaza Strip following a visit to Gaza cabinet headquarters that the Canadian position was unfair. "It is not against the Palestinian cabinet only, but also a punishment to our people for their democratic choice," said Haneya.

Immediately after the new Hamas-led cabinet was sworn-in on Wednesday before Palestinian President Mahmoud Abbas, Canada announced that it decided to suspend financial aid to the Palestinian National Authority (PNA).

The United Sates also said that it was reviewing its Palestinian aid programs and would decide soon what programs to freeze after Hamas comes into power.

"The principle is very clear. We're not going to fund a Hamas-led government, provide funding to a Hamas-led government," said U.S. Secretary of State Condoleezza Rice, who made the remarks on her way to Germany for talks on Iran Thursday.

In response to the western threat of cutting aid, Haneya said that his cabinet would have persistence and legitimacy from the Palestinian people, the Arab nations and all those in the world who support the Palestinians to regain their rights and end the injustice and occupation imposed on them.

Israel has already stopped transferring a monthly tax revenue it collects on behalf of the Palestinian government in a move to press the radical group to renounce violence, recognize Israel and honor previous agreement.

Hamas, which won January Palestinian elections in a landslide victory, is currently under western pressure to change its political charter which advocates destroying Israel. Israel, the United States and the European Union list Hamas asa terror group.

However, Hamas' assumption of power and refusal to change could cause an immediate financial crisis for the new Palestinian government, which is deeply dependent on foreign aid.