PALESTINIAN PRIME MINISTER ISMAIL HANIYEH OF HAMAS SAID SATURDAY THAT HIS GOVERNMENT WOULD NOT CHANGE ITS POLICIES, DESPITE WHAT HE SAID WERE U.S. AND EU ATTEMPTS TO 'BLACKMAIL' HAMAS. THE UNITED STATES AND THE EUROPEAN UNION SAID FRIDAY THEY WERE CUTTING OFF HUNDREDS OF MILLIONS OF DOLLARS IN AID SINCE HAMAS HAD NOT AGREED TO REVISE ITS POLICIES. 'IN THE SHADOW OF THE UNFAIR AND UNJUST DECISIONS ADOPTED BY THE WEST AND THE U.S. ADMINISTRATION ... I WANT TO AFFIRM HERE THAT THIS SIEGE AND THIS BLOCKADE HAVE ONE AIM AND ONE TARGET, TO BLACKMAIL THE GOVERNMENT,' HANIYEH TOLD REPORTERS IN GAZA. 'THEY ARE NOT GOING TO BLACKMAIL US OR MAKE US GIVE IN ON THE RIGHTS AND PRINCIPLES OF THE PALESTINIAN PEOPLE.' HAMAS HAS ACKNOWLEDGED THAT THE PALESTINIAN AUTHORITY IS BROKE AND WILL NOT BE ABLE TO PAY THE SALARIES OF ABOUT 140,000 GOVERNMENT WORKERS WITHOUT FOREIGN ASSISTANCE. THESE SALARIES SUPPORT ABOUT ONE-THIRD OF THE PALESTINIAN POPULATION. HAMAS HAS HINTED IN RECENT DAYS THAT IT MIGHT BE WILLING TO REFORM. A SENIOR OFFICIAL FROM THE GROUP WAS QUOTED AS SAYING BY THE ASSOCIATED PRESS FRIDAY THAT IT WOULD BE WILLING TO ACCEPT A TWO-STATE SOLUTION TO THE CONFLICT IMPLYING THAT ISRAEL COULD BE RECOGNIZED IF A PALESTINIAN STATE IS FORMED.