MIDDLE EAST:The Hamas cabinet resigned yesterday to make way for the formation of a Palestinian national unity government including Fatah and other factions.
Last-minute disputes between Hamas and Fatah threatened to stall or scupper the power-sharing agreement reached in Mecca last week. However the factions decided to set up committees to resolve remaining differences during a meeting at the Gaza office of legislator Ziad Abu Amr, who is expected to be foreign minister in the new government.
Once the dissolution of the cabinet was announced, Palestinian president Mahmoud Abbas handed incumbent prime minister Ismail Haniyeh a letter of appointment asking him to form a coalition. If the talks had failed, it was feared armed elements from Fatah and Hamas would resume street fighting which has killed 100 Palestinians since December.
Clashes were suspended by the Saudi-brokered Mecca accord.
Key issues must be addressed before the unity government can be finalised. Mr Abbas has refused to approve one of two Hamas-nominated independent candidates for the interior ministry which controls several security agencies, calling for a wider choice. Mr Abbas has also refused to ratify decisions made by the Hamas government, including appointments of Hamas figures to the civil service and the recruitment of 5,600 Hamas militiamen into the security forces.
Hamas has insisted that Mr Abu Amr should be considered an independent rather than a Hamas nominee so that he would not be part of the movement's quota of cabinet posts.
Hamas is entitled to 10 ministers, including that of prime minister, Fatah is entitled to six and small parties to four. Independents nominated by Fatah and Hamas are meant to hold five key ministries.
Finally, Mr Abbas has insisted on the appointment as deputy prime minister of Muhammad Dahlan, the former security chief in Gaza and a fierce opponent of Hamas - a post reserved for Fatah.
But since Hamas is entitled to approve or reject the nominee, it has insisted that the post should be filled by someone from the West Bank rather than Gaza.
Once the coalition is formed, it is not clear whether Western donors will restore financial assistance cut off when Hamas formed the government last year. Mr Abbas and Mr Haniyeh argue that the Mecca accord fulfils conditions set by the international community for aid to flow.
The US however says it will continue boycotting all ministers in a unity government unless it halts violence against Israel, recognises the Jewish state and commits to previous agreements.
Mr Abbas is set to meet secretary of state Condoleezza Rice on Sunday.
