Palestinian Prime Minister Ismail Haniyeh of Hamas took the job of forming a new government with the moderate Fatah movement, facing unresolved internal disputes and a reported warning of a US boycott.
In quick succession on Thursday, Haniyeh and his government resigned and President Mahmoud Abbas of Fatah appointed him to form the new team, based on last week's agreement in the Muslim holy city of Mecca to split power between the two rivals.
Haniyeh has five weeks to put together a new Cabinet. During that period, Hamas and Fatah need to resolve deep disputes over control of the security forces and whether to dismantle a separate Hamas militia.
However, even if the coalition is formed, it appears increasingly unlikely it will win international backing. The new government's political program falls short of a key condition by the international community, explicit recognition of Israel. Instead, it contains a vague promise to "respect" international agreements, at best implying recognition.
Hamas is considered a terror group by the US, the EU and Israel, and the Hamas-led government was targeted by a crippling international aid boycott.
Abbas aides said on Thursday that US officials made it clear that Washington would boycott the emerging Palestinian government, including independent and Fatah Cabinet ministers.
Abbas, elected separately, would not be included in such a boycott, the aides said.
US Secretary of State Condoleezza Rice is cheduled to attend a three-way summit with Abbas and Israeli Prime Minister Ehud Olmert on Monday.
Initially billed as a step toward resuming peace talks, frozen for more than six years, the summit will now likely be overshadowed by the disagreements over the Palestinian government.
In an interview on Palestinian TV late on Thursday, Abbas told his people that the boycott would not be lifted right away, but "we will fight and struggle, and we hope this can be accomplished soon, though there are still obstacles."
Abbas also said the letter appointing Haniyeh to form the government backs implicitly peace talks with Israel, run by Abbas' PLO.
The international demands have put Abbas in a bind. Had he pulled out of the deal with Hamas, he could have been branded a traitor by his people, become increasingly ineffective and triggered more factional fighting.
Since May, more than 130 Palestinians have been killed in Fatah-Hamas clashes.
In moving forward with the new partnership, Abbas will likely deepen the Palestinians' isolation.
Abbas will meet David Welch, a senior US State Department official, today and Rice tomorrow, in part to try to persuade them to change their position, the Abbas aides said.
The Palestinians also hope Saudi Arabia, a US ally, will help. Saudi Arabia brokered the Mecca power-sharing deal that formed the basis for the Hamas-Fatah coalition talks.
Fatah spokesman Abdel Hakim Awad said Saudi Arabia would be the guarantor of the agreement "because of the influence it has in the international, Arab and Islamic arenas."
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