Palestinian Prime Minister Ismail Haneya said on Saturday that his Hamas-led government would not make political concessions after the United States and the European Union cut crucial aid to the Palestinian National Authority.

"The decision of the West to cut aid is unjust and aimed to blackmail us," Haneya told reporters in Gaza City."But they will not force us to make political concessions or to give up our principles," he vowed.

The prime minister, who is also a senior Hamas leader, also urged the international community to respect the Palestinian people's democratic choice in giving the election victory to Hamas in the January legislative elections.

Haneya made the statements one day after the United States and the European Union, key Mideast peace mediators and donors,announced that they decided to suspend direct financial aid to the Palestinian National Authority since Hamas remained defiant over its hardline positions.

The U.S. and the EU have demanded Hamas, or the Islamic Resistance Movement, to renounce violence, recognize Israel's right to exist and accept previous Palestinian-Israeli deals, but Hamas refused to heed the calls.

But the U.S. and the EU pledged to continue humanitarian aid to the Palestinian people through nongovernmental organizations.

Following the aid cuts, Palestinian President Mahmoud Abbas,whose Fatah movement was defeated by Hamas in the Jan. 25 ballot,also called upon the international community not to punish the Palestinian people for their democratic choice.

The Hamas government, sworn in on March 29, is facing severe financial shortages.

Israel has also halted the monthly transfer of about 50 million U.S. dollars of tax revenues it collects on behalf of the Palestinians to the Palestinian government since Hamas' sweeping election victory.