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GAZA CITY, Gaza Strip - It didn't take long for the first blow to land after Hamas took over the Palestinian government. Within hours after the Islamic militant movement's Cabinet was sworn in, Canada cut off all aid to the Palestinian Authority.

It's likely the Canadians will be only the first in line. Labeling Hamas a terror organization, the U.S. and Europe are considering cutting off hundreds of millions of dollars in badly needed assistance, money that would pay the salaries of more than 100,000 people in the public service.

The Palestinian public sector is notoriously bloated, corrupt and wasteful but provides paychecks to families that otherwise would be destitute.

State Department spokesman Sean McCormack said the United States is looking for ways to get humanitarian aid to the Palestinian people, but ''we are not going to provide funds to a terrorist organization.''

Israel already suspended transfer of tax money it collects for the Palestinians and pledges not to have anything to do with the new government.

The feeling is mutual.

Hamas does not accept the presence of a Jewish state in the Middle East, and 14 of the 24 new ministers have done time in Israeli prisons.

Canadian Foreign Affairs Minister Peter MacKay said Wednesday that his country had no choice but to suspend assistance and decline any contact with the new Hamas Cabinet.

''The stated platform of this government has not addressed the concerns raised by Canada and others concerning nonviolence, the recognition of Israel and acceptance of previous agreements and obligations, including the road map for peace,'' MacKay said.

''As a result, Canada will have no contact with the members of the Hamas Cabinet and is suspending assistance to the Palestinian Authority.''

However, Ottawa emphasized it would continue giving humanitarian aid to the Palestinian people through U.N. and nongovernment organizations.