RAFAH, Egypt - A Palestinian legislator was briefly detained Tuesday at the border between Egypt and the Gaza Strip when he was found carrying US$2 million in a suitcase, security officials said.

The legislator Mushir al-Masri belongs to the ruling Hamas party, whose funding was cut off by the United States, the European Union and Israel after it won Palestinian elections earlier this year.

Mushir al-Masri attends the first session of the new Palestinian parliament in Gaza City, in this Saturday, Feb. 18, 2006 file photo. Al-Masri was briefly detained Tuesday, Nov. 14, 2006 when he was found to be carrying $2 million (euros 1.56 million) in a suitcase as he tried to return to Gaza from Egypt, Egyptian security officials said. [AP]

Al-Masri was released after he was questioned by Egyptian security officials, who seized the money, the officials said on condition of anonymity because they were not authorized to speak to the media. He spent Tuesday night on the Egyptian side of the border, apparently hoping that the money would be returned and he would be allowed to take it to Gaza.

The West cut off hundreds of millions of dollars in international aid and tax revenues to the Palestinians after Hamas took power in March in an effort to pressure the Islamic militant group to recognize Israel, renounce violence and honor past peace agreements between Israel and the Palestinians.

The move has crippled the government, making it largely unable to pay salaries to its 165,000 employees. Since funding was cut off, a number of Palestinian officials have returned home carrying large amounts of Arab aid in cash. Last month, Palestinian Interior Minister Said Siyam was permitted to cross the Egypt-Gaza border with US$2 million.

Al-Masri could not reached for comment, but a Palestinian diplomat in the Gaza border town of Rafah confirmed the incident and said security officials in Egypt had contacted the Palestinian Authority about the money. The diplomat also spoke on condition of anonymity.

It was not known where al-Masri got the money. Palestinian Foreign Minister Mahmoud Zahar said Thursday that Hamas had been receiving funds from Saudi Arabia, Kuwait and other Arab countries.

The Arab League - angered by an Israeli military offensive in Gaza - voted over the weekend to end its financial blockade on the Palestinians after the Hamas government agreed to an international peace conference with Israel.

Arab banks have not transferred funds to the Palestinian Authority for fear of US-led sanctions. The US and EU list Hamas as a terrorist organization and take steps against those who transfer funds to such groups.

In an immediate show of support, Kuwait's foreign minister said his country would send $30 million to the Palestinians, and Bahrain's foreign minister said the Arab countries would begin contacting international financial institutions to get the money transferred to the Palestinians.

Mohammed Awad, secretary general of the Palestinian Cabinet, said at least US$52 million would be ready for immediate transfer.