Israel Radio reported Wednesday that Palestinian Authority Finance Minister Salem Fayed has refused to accept the NIS 70 million in frozen tax revenues that Israel was to hand over this week.

Fayed reportedly rejected conditions that Israeli officials had set for transfer of the funds.

The NIS million represents a third of the PA tax revenues that Israel froze soon after the September, 2000 outbreak of the Palestinian uprising.

Israel demanded that the funds not be transferred to the Palestinian police, the radio reported, and that Fayed submit a report stating the criteria under which the monies would be distributed.