Israel at loggerheads with allies on boycott of Palestinian coalition

As Hamas and Fatah reach a deal to form a new national unity cabinet, Tel Aviv vows to have no dealings with it

By Donald Macintyre in Jerusalem

Israel was facing a sharp potential split with some of its major allies last night after leading European governments held back from joining its blanket boycott of the newly approved coalition Palestinian Authority.

As expected the Palestinian parliament yesterday approved by 83 votes to three the new "national unity" cabinet which will now include independents along with members of Fatah and smaller factions under the premiership of Hamas's Ismail Haniyeh. Of the parliament's 132 members, 41 are currently in Israeli detention.

Israel swiftly reaffirmed that it would not deal with the new government on the grounds of its failure to meet the three international conditions of recognising Israel, renouncing violence, and promising to abide by previous agreements between it and the previous Palestinian leadership.

As the US continued to reserve judgment, Britain was urging the EU to follow a policy of opening contacts with the narrow majority of non-Hamas ministers in the new cabinet and finding ways of co-ordinating aid through Salam Fayyad, the internationally respected Finance Minister in the new government.

Russia, one of the members of the international "Quartet", along with the US, the UN and the EU, declared, "It is inarguably an important event in terms of consolidation of the Palestinian ranks," and insisted that the new government's programme had "taken into account" the Quartet's three conditions.

Israel says it will maintain contacts with the Palestinian President, Mahmoud Abbas, who told the parliament that the Palestinian people "reject violence in all its forms" and sought a comprehensive peace with Israel "based on negotiations". But it has made clear that it will not deal with any other members of the government which Mr Abbas swore in yesterday.

While Hamas as a movement has not abandoned its long-term doctrine of a single Palestine from the Jordan to the Mediterranean, Mr Haniyeh said yesterday the aim of the new government was to establish a Palestinian state alongside Israel on the borders before the Six Day War in 1967. Hamas has offered a long-term truce in return for such a state and said it will not prevent Mr Abbas from negotiating one with Israel.

But Miri Eisin, spokeswoman to Ehud Olmert, Israeli Prime Minister, seized on comments by Mr Haniyeh in which he affirmed "that resistance in all its means" against occupation was a legitimate Palestinian right. Ms Eisin said: "Resistance is terror. Nobody should get that one wrong."

In Ramallah Mr Fayyad underlined the need for support, saying: "We do face a very serious and crippling financial crisis. Without the help of the international community, it is not going to be possible for us to sustain our operations." The new government also faces formidable problems in ending a spate of violence and lawlessness. As parliamentarians arrived for the session in Gaza yesterday, dozens of Palestinian journalists demonstrated in protest against the kidnap last Monday of the BBC's resident correspondent, Alan Johnston, who was seized from his car last Monday and is still in captivity.

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