Blair government rejected Israeli pressure to ban leading pro-Palestinian charity, Newly-released British documents reveal

Defence affair - classified documents

Tony Blair’s government rebuffed high-level Israeli pressure to crack down on the Palestinian Relief and Development Fund (Interpal), a UK-based charity known globally for providing humanitarian aid to Palestinians in the occupied territories and neighboring countries, newly declassified British documents reveal.

In 2001, the UK government proscribed the military wing of the Palestinian Islamic Resistance Movement (Hamas). However, files from the Prime Minister’s Office, released by the British National Archives, show that British and Israeli officials were also cooperating on discussions about proscribing the political wing of Hamas.

Although the political wing of Hamas had not been banned at the time, Israel urged the UK to take action against Interpal, alleging that the charity was diverting funds to Hamas.

Interpal was founded in 1994 as a non-political charity focused on delivering relief and development aid to impoverished Palestinians, primarily in the in Gaza Strip, the West Bank, Lebanon, and Jordan.

In May 1997, Israel banned the charity, even though it was registered and regulated by the UK Charity Commission (CC). The US government also accused Interpal of supporting terrorism and, in August 2003, designated it a terrorist organisation for allegedly supporting both the political and militant wings of Hamas.

When Israel pressed the UK to take action against Interpal in 2004, the British government rejected the request due to a lack of evidence. Despite a US-led international campaign against the charity, British authorities maintained there was no legal basis to proscribe Interpal.

During meetings in London in early March 2004, Israeli Foreign Minister Silvan Shalom was informed that any action would need to pass legal scrutiny. At that time, British officials emphasised that no steps could be taken against Interpal unless Hamas was first proscribed in full. According to briefing documents prepared for the Prime Minister, Foreign Secretary, and senior officials, it was reiterated that even if Hamas was banned, action against Interpal would be taken “only if we have appropriate evidence that it sends funds to Hamas after it is proscribed”.

The documents show that the Charity Commission, Home Office, and Treasury -which oversees the UK’s sanctions list – were already discussing possible next steps in the event that the Home Secretary agreed to proscribe Hamas. The Israelis were told that any future action would require a list of entities operating in the West Bank and Gaza linked to Hamas and known to have received funding from international charities. “This will be the basis for any such action we might take [against Interpal],” the briefing stated, noting that Israel had pledged assistance in compiling such a list.

Meanwhile, Shalom was reassured that efforts to proscribe Hamas and freeze the assets of six named Hamas leaders were ongoing. However, British officials stressed that these efforts had to follow due legal process. The Foreign and Commonwealth Office advised that although there were “political and parliamentary handling issues to consider,” a case was indeed being prepared to ban Hamas. Under pressure from Israel, Priti Patel, then UK Home Secretary proscribed the resistance in 2021

Two months before Shalom’s visit, the Israeli security services had provided “very useful information” to their British counterparts, which were considered a “valuable assistance” in moving the proscription effort forward.

Between 1996 and 2009, the Charity Commission conducted three full inquiries into Interpal. Each investigation cleared the charity of wrongdoing and found no evidence of links to terrorism or misuse of funds.

Between 2005 and 2019, Interpal won several libel cases against pro-Israel media outlets and organisations, including The Jerusalem Post, The Daily Express, Daily Mail, Mail Online, Jewish Chronicle, and the Board of Deputies of British Jews. In total, the charity was awarded more than £200,000 in damages.

In July 2010, the High Court in London ruled that it was libelous to claim Interpal supported Hamas.

Since the US designation in 2003, Interpal has suffered significant financial losses.

The pressure from US legal restrictions and the pro-Israel lobby ultimately succeeded in shutting down Interpal’s access to banking services. UK banks were forced to close the charity’s accounts. This severely hindered its ability to receive donations.

Interpal’s total income dropped dramatically—from about £5 million in 2010 to under £93,000 in 2023, thereby forcing it to suspend its traditional fundraising and programmatic operations. The charity now states that its mission is to empower Palestinians to face their challenges and hardships, particularly in the West Bank, Gaza Strip, and refugee camps in Jordan and Lebanon.

Its current work focuses primarily on community development, advocacy, and raising awareness of the Palestinian cause. It also provides expertise and capacity-building support to other organisations working to deliver humanitarian aid to Palestinians in need.