In her first visit to the U.S as a new Israeli Foreign Minister, Tzipi Livni, on Wednesday, said a Hamas-Led Palestinian Authority will be a terrorist entity.

"When a state is run by terrorists, it becomes a terrorist entity," Livni said in a press conference with U.S. Secretary of State Condoleezza Rice.
Livni added that Israel will not transfer any more tax revenue money to the Palestinian Authority.
Livni’s visit to the US came as part of consultation; the American administration is holding with the regions countries in the aftermath of Hamas’ surprise electoral victory of last month’s Palestinian Parliamentary elections.
In the same press conference, Rice hoped that Hamas will decide to recognize Israel adding that the US will continue aiding the PA as long as Hamas is not at power.
Rice said that the American administration will seek ways to deal with the Palestinian Authority depending on any future developments in case hamas did not recognize Israel then the US will not cooperate with it.
Asked about if the U.S. will change its stance concerning the settlements after statements by the acting Israeli Prime Minister Ehud Olmert concerning Israel’s intention to keep the largest settlement blocs in the West Bank and the Jordan Valley, Rice said that the U.S. preferred dialogue over unilateral moves.
"Under no circumstances should anyone try and do that in a preemptive or predetermined way, because these are issues for negotiation at final status," she said.