Israel - U.S.

     Israel and the U.S. will continue their joint effort to stop the flow of weapons from states that support to terror organizations, Foreign Minister Tzipi Livni and U.S. Under Secretary for Terrorism and Financial Intelligence Stuart Levey decided during talks today and the effort will focus first and foremost on Iran.Olmert and Livni provided Levey with information regarding the channels Iran was using to transfer money to Hizbullah in Lebanon and to Hamas in the Palestinian territories. Livni and Levey met Sunday in order to consolidate a decisive line within European states against financial institutions which conduct business with Iran. Olmert and Livni updated the American statesman during their talks with information on Iran's methods of transferring funds to Hezbollah and Hamas.Levey believes that imposing a boycott on the banking and trading system of Iran would be much more effective than sanctions. It would not require long diplomatic efforts or complex legislation. It would be sufficient for the administration to announce that a company or a bank is on a black list, and they are immediately cut off from the American financial system, are unable to trade in dollars or make deals with banks in the US, media reported.(20,58)