Hamas Takes Step to Recognise Israel

Hamas lost a crucial power struggle over recognition of Israel yesterday by agreeing to surrender control of the Palestinian government in favour of a powersharing administration committed to a negotiated two-state settlement.

The deal was a victory for Mahmoud Abbas, the Palestinian president, in his attempt to establish a government committed to a peaceful settlement of the Israeli-Palestinian conflict as a means to force Israel to the negotiating table.

But the breakthrough was overshadowed by a deepening crisis over the fate of an Israeli soldier abducted by Palestinian militias to the Gaza Strip. Israel continued to build up a force of tanks and troops on Gaza's border after threatening invasion and to target Hamas leaders for assassination if the captured soldier Corporal Gilad Shalit was harmed.

Last night Israeli jets fired missiles at two bridges in the north and south of Gaza to prevent Cpl Shalit being moved out of the area. They also fired five missiles at the only power station in the Gaza Strip, cutting off electricity supplies.

Despite face-saving denials from Hamas over the extent of its political concessions, Mr Abbas yesterday secured an agreement that commits all parties in government to recognise Israel and authorises him to negotiate a final agreement to establish an independent Palestinian state on territories occupied in 1967.

After its unexpected landslide election victory in January, Hamas said it would not retreat from its goal of replacing the Jewish state with an Islamic one. It also resisted negotiations.

But the group backed down after a threat by Mr Abbas to hold a referendum on the issue as a means to end crippling economic sanctions imposed by foreign donors until Hamas recognises Israel, renounces violence and agrees to abide by agreements in which the Palestine Liberation Organisation accepts a two-state solution. Opinion polls suggested Hamas would lose a referendum because most Palestinians support negotiations with Israel.

Mr Abbas's aides described Hamas's endorsement of the agreement, drawn up by Palestinian prisoners in Israeli jails, as a "surrender to reality" and "showing the world that the Palestinians are partners for peace".

"The document recognises the state of Israel and the PLO," said Mr Abbas's spokesman, Walid Awad. "Hamas has signed the document and has recognised the PLO and its agreements. It's clear. It is an important way forward, a way forward for the Hamas moderates."

Mr Awad said there was agreement that a powersharing government would include all parties and technocrats, although the final composition and a date for its installation still has to be negotiated.

Hamas denied that its acceptance of the prisoners' document was also a recognition of the Jewish state.

"This is not a direct recognition of Israel," said a founder of Hamas, Issa Ali Nashar. "The recognition is in the document, it is not Hamas saying it directly recognises Israel. There is recognition of resolutions by the UN (that recognise Israel) in the document. We accept this because we want to change the life of the Palestinian people."

But there was little doubt that it represents a retreat by the Hamas political leadership, demonstrated by the resistance it showed to accepting the prisoners' document until faced with Mr Abbas's ultimatum. But the group's military wing and its political leaders in exile oppose the agreement, which could complicate its implementation.

The agreement in itself is not likely to lead to a swift resumption of $1bn (£550m) in annual foreign aid which has been frozen for four months, leaving the economy in decline and the Palestinian government unable to pay its workers.

European officials were wary but said a new government could lead to the end of the sanctions. The US said it was waiting to see how the agreement would be implemented.

Israel said it wants an explicit statement from Hamas recognising the Jewish state, and that the prisoners' document was unacceptable because it accepted resistance to occupation.