Abbas Meets With Palestinian Leaders

Palestinian Authority President Mahmoud Abbas gestures during a news conference with United States Secretary of State Condoleezza Rice, not seen, foollowing their meeting in the West Bank town of Jericho, Thursday, Nov. 30, 2006. Secretary of State Condoleezza Rice called on Israelis and Palestinians Thursday to step up efforts to achieve peace, saying neither side should take actions that would prejudge a final accord. "Hopefully we can take this moment to accelerate our efforts and intensify our efforts toward the two-state solution that we all desire," Rice said at a news conference with Palestinian President Mahmoud Abbas in the West Bank town of Jericho. (AP Photo/Nasser Shiyoukhi) (Nasser Shiyoukhi - AP)

RAMALLAH, West Bank -- Palestinian President Mahmoud Abbas convened the PLO's top decision-making body Friday to map out a strategy after declaring that talks to form a more moderate government with ruling Hamas militants had collapsed.

Abbas has two options, both problematic for him _ fire the Hamas-led government or hold a national referendum on whether to call early elections.

Recent polls have shown that Abbas' Fatah Party would not have enough support to oust the militantly anti-Israel Hamas in new balloting. But if he dismisses the Hamas Cabinet, the Hamas-dominated parliament would veto any new government he appoints, leading to a constitutional crisis that could force elections.

With talks deadlocked, the PLO Executive Committee conferred in Ramallah, and afterward, Abbas _ the head of the PLO _ was to head to the Gaza Strip to update Palestinian faction leaders on the talks.

Abbas planned to address the Palestinian people "very soon" to discuss his next move, said Saeb Erekat, a top Abbas aide.

Abbas has been trying for months to cobble together a unity government that would be more accommodating of Israel and lead the West to lift a painful aid cutoff. On Thursday, with Secretary of State Condoleezza Rice at his side, Abbas announced that negotiations were at a "dead end."

Talks have faltered repeatedly over Abbas' insistence that Hamas recognize Israel and renounce violence _ key international demands that Hamas has rejected.

Hamas has suggested Abbas' declaration that talks had collapsed was designed to pressure the militant group to make further concessions. Prime Minister Ismail Haniyeh of Hamas, speaking in Cairo, denied talks had broken down.

The latest round of talks floundered over who would control weapons and money in a future Cabinet of independent administrators who would be close to Hamas or Fatah, but not prominent members of either group.

Hamas unseated Fatah in parliamentary elections in January, ending its four-decade domination of Palestinian politics. Since then, gunmen from the two groups have often clashed, and an end to negotiations could touch off new violence.

The prospect of more turmoil in the Palestinian territories came as Rice traveled to the West Bank and Israel on Thursday to lend high-level support to tentative peace moves between Israel and the Palestinians.

On Sunday, a truce ending five months of violence took effect on the Gaza-Israel border, and Israeli Prime Minister Ehud Olmert urged the Palestinians to discuss a final peace deal, complete with significant Israeli territorial concessions in the West Bank.