Palestine: It appeared unlikely last night that senior Hamas and Fatah officials would reach early agreement on a plan calling for the creation of a Palestinian state in the West Bank, Gaza and East Jerusalem.
The plan would imply recognition of Israel within pre-occupation boundaries, enabling Hamas to meet the key demand of the "quartet" comprising the EU, US, UN and Russia.
The quartet also insists that Hamas stop violence and endorse agreements reached previously by Palestinians and Israelis.
The plan, put forward by high- profile Palestinian prisoners in Israeli jails, also proposes a national unity government made up of technocrats; the absorption of Hamas and Fatah militiamen into the security forces; restriction of attacks on Israel to the West Bank; and agreement that negotiations with Israel should be conducted by the Palestine Liberation Organisation, which Hamas would agree to join.
Palestinian prime minister Ismail Haniyeh said: "Dialogue is continuing with the utmost seriousness with a view to reaching agreements on certain points of the prisoners' document."
But he observed it was "premature" to speak of the dissolution of the current Hamas cabinet and the formation of a national unity government, as laid down in the document.
"It is Hamas, which has the largest group in parliament, that will form every Palestinian government in the next four years."
Palestinian president Mahmoud Abbas adopted the plan shortly after it was issued and gave Hamas 10 days to accept or face a referendum on July 26th. But faced with strife between Hamas and Fatah gunmen, Mr Abbas extended the deadline so negotiations could continue.
It would be difficult for him to accept a deal that did not involve a national unity government, necessary to bring an end to the boycott of the Palestinian Authority by international donors who provide the funds on which the Palestinians depend.
Mr Abbas has gambled on the plan's acceptance - in a referendum - by a solid majority of Palestinians who want negotiations to go forward and are in dire need of assistance suspended due to Hamas' refusal to meet the quartet's demands.
However, the latest opinion poll shows that while 75 per cent of Palestinians say they support the document, only 47 per cent would vote for it in a referendum. And 44 per cent say they would vote against.
Even if the leaders of Fatah and Hamas agree on the remaining points and the prisoners' initiative is adopted, Mr Abbas may be unable to implement it because both organisations are plagued by rebellious factions that do not want accommodation.
Anticipating this, Hamas and Fatah have been holding separate secret talks to reach agreement on security arrangements.
Ahead of these talks, Fatah recruited 4,000 more fighters in Gaza in order to pressure Hamas to place its militia under Palestinian Authority control.
Out-manned and out-gunned, Hamas, reportedly, agreed that its 3,000-strong military wing should merge with the security services.