Fatah, Hamas divided over recognition of Israel

MIDDLE EAST: Palestinian prime minister Ismail Haniyeh said yesterday that he would not head a national unity government which recognised Israel. He said that Hamas would accept a Palestinian state in the West Bank and Gaza with its capital in Jerusalem and the return of Palestinian refugees in exchange for a truce with Israel, but it would not extend recognition.

Mr Haniyeh's statement contradicted the assertion made by President Mahmoud Abbas to the UN General Assembly that the proposed coalition government would abide by a 1993 letter from the Palestine Liberation Organisation stating that it "recognises the right of Israel to exist in peace and security".

Following Hamas's election victory in January, the Quartet, comprising the UN, US, EU and Russia, laid down three conditions for dealing with a Hamas-led government: recognition of Israel, a halt to violence, and acceptance of previous commitments. On Wednesday, the Quartet seemed to soften its stand by saying that a unity government should "reflect" these demands. The US, however, has stuck by its call for full-scale recognition.

During talks over the past three months Mr Haniyeh and Mr Abbas agreed that the new government would be formed on the basis of a document put forward by Palestinian prisoners in Israeli jails. This text infers de facto recognition of Israel by stating that the Palestinian goal is an independent state in the territories Israel occupied in 1967 - 22 per cent of geographic Palestine. The remaining 78 per cent would be accepted as Israel.

However, when Mr Abbas proclaimed that the government would agree to the 1993 letter he destroyed the creative ambiguity enshrined in the deal over the prisoners' document. Until then Mr Haniyeh could interpret it in a way that would satisfy his constituency, while Mr Abbas could argue that Palestinians had met Quartet demands.

Both Hamas and Fatah are divided over the proposed unity coalition. After winning the parliamentary election, Hamas proposed such a government but Fatah rejected the overture.

Today, hardliners on both sides are opposed, but the parties are under public pressure to end financial sanctions by accepting the Quartet's conditions. Seventy per cent of Palestinians are living below the poverty line.

The cash-strapped Palestinian Authority is unable to pay salaries. Civil servants and teachers are on strike, hospitals cannot provide healthcare, businesses are folding and trade has halted.