By IBRAHIM BARZAK
The Associated Press
Sunday, June 4, 2006; 9:49 AM
GAZA CITY, Gaza Strip -- The Hamas-led Palestinian government on Sunday rejected a deadline to accept a proposal that implicitly recognizes Israel, saying President Mahmoud Abbas' plan for a referendum on the matter is illegal.
The statement by Prime Minister Ismail Haniyeh was the strongest sign yet that Hamas will not give in to Abbas' ultimatum to accept the principle of a Palestinian state alongside Israel. Abbas has given Hamas until Tuesday to decide or face a national referendum that he is expected to win.
"The local basic law and the advice which we got from experts in international law say that referendums are not permitted on the Palestinian land," Haniyeh told reporters. However, he said he would try to continue a dialogue with Abbas over the plan.
Abbas presented the ultimatum late last month as a way out of an increasingly bloody power struggle with Hamas. Hamas is deeply divided on the issue, and Haniyeh's statement appeared to be an attempt to buy time. Hamas is wary of being blamed for failure of the plan.
With the deadline looming, Hamas and Fatah representatives met in the West Bank Sunday to discuss the proposal. But they said they had made no progress and that hopes for agreement were fading.
Hamas, which defeated Fatah in January legislative elections, has demanded the dialogue be moved to its Gaza Strip stronghold, where most Hamas leaders live.
"We are ready to bring the dialogue to Gaza," Haniyeh said. "We are ready to contribute by all means to make this dialogue succeed."
Fatah officials were expected in Gaza later Sunday to meet Hamas leaders. But officials said Abbas had no plans to go to the area. Israel does not permit Hamas leaders to travel between the West Bank and Gaza.
Hamas was founded two decades ago with the goal of destroying Israel and establishing an Islamic state in its place. Israel, the U.S. and the European Union have branded Hamas, which has killed scores of Israelis in suicide bombings, a terrorist group.
Since taking office in March, Hamas has come under heavy international pressure to renounce violence and recognize Israel. It refuses, despite cuts in international funding that have left the government unable to pay some 165,000 civil servants for three months.
Haniyeh said the government plans to pay one month's salary on Monday to thousands of low-income employees. However, the government remains unable to pay more than 100,000 other workers.
Haniyeh said he plans to tour the Arab world to seek more financial support.
Abbas, elected separately last year, has been trying to curb the Hamas government's powers _ and in particular has tried to maintain control over Fatah-dominated security forces.
Abbas has been pushing Hamas to accept a plan calling for a Palestinian state next to Israel. The plan was drawn up by senior Hamas and Fatah prisoners held by Israel. Prisoners hold great weight in Palestinian society.
Abbas believes that if Hamas accepts the so-called prisoners' agreement, it will open the way for the West to resume vital aid payments to the Palestinians and allow him to restart peace talks with Israel.
Israel's prime minister, Ehud Olmert, says peace talks are virtually impossible as long as Hamas remains committed to Israel's destruction. Olmert was headed to the Egyptian resort of Sharm el-Sheik on Sunday for talks with Egyptian President Hosni Mubarak, who often acts as a mediator between Israel and the Palestinians.
Azam al-Ahmad, a Fatah official participating in the negotiations, said Abbas is committed to the deadline.
"Abu Mazen will resort to a referendum by Tuesday morning if he does not receive anything positive from Hamas on the prisoners' document," he said. Abbas is widely known as Abu Mazen.
A poll released last week showed that nearly 90 percent of Palestinians favor the plan.
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AP reporter Mohammed Daraghmeh contributed to this story from Ramallah, West Bank.