Hamas pushes for coalition deal

Hamas has been given two weeks to form a unity government

Officials from the Islamic militant group Hamas have held fresh talks with the other factions on forming a Palestinian coalition government.

The meeting reportedly ended without agreement, but Hamas was expected to submit a new draft programme before talks continued on Tuesday.

Hamas proposals have been rejected by the long-dominant Fatah Party, which lost January's parliamentary elections.

A deal with Hamas might jeopardise Fatah's relationship with Washington.

The head of the Hamas parliamentary group, Mahmoud Zahhar, hosted the talks at his home in Gaza City, where he was joined by Fatah official Majid Abu Shammaleh.

We hope this new draft programme will allow everybody to join the government and still retain our basic Palestinian rights Hamas spokesman

Representatives of the Democratic Front for the Liberation of Palestine, the Popular Front for the Liberation of Palestine and the Palestine People's Party also attended.

Hamas PM-designate Ismail Haniya joined the meeting for just over an hour, AFP news agency reported.

"We will try to submit a new draft to the other factions this evening that is acceptable to all our brothers," said Hamas spokesman Salah Bardawil.

"We hope this new draft programme will allow everybody to join the government and still retain our basic Palestinian rights," he added.

Observers say the sticking points are over the two-state solution to the Israeli-Palestinian conflict, previous accords with Israel, and the Palestinian Authority basic law.

Recognition

Palestinian Authority President Mahmoud Abbas has given Hamas another two weeks to form an administration.

He has warned that after that date, his Fatah party would be ready to form a minority government or recommend that the premiership be taken by an independent.

Mahmoud Zahhar has been at the centre of talks

Mr Abbas and the international community have demanded that Hamas recognises Israel's right to exist, renounces the armed struggle and respects agreements with Israel as a condition for entering government.

Western diplomats quoted by Reuters news agency say the Bush administration intends to cut contacts with Mr Abbas if Fatah joins the government.

"If Fatah joins as an organisation, it would fall into the same category (as Hamas)," a diplomatic source said.

Washington is banned under US law from providing aid directly to a government led by Hamas, which it considers a terrorist organisation.

"Of course if Hamas and other government members accept the Quartet principles, that changes the situation," the diplomatic source is quoted as saying.