Israel Declares Gaza 'Hostile Entity'

The security cabinet decision effectively marks another step in dividing Gaza, where Hamas runs an increasingly isolated administration, from the West Bank, where Abbas's U.S.-backed government holds power.

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Livni, another aspiring prime minister, said Israel did not want to split the territories. But she said the parallel governments required Israel to adopt distinct polices toward each, declaring that the decision Wednesday was consistent with international law.

But Noga Eitan, a spokeswoman for the Israeli human rights group Gisha, called the security cabinet decision "a legal, ethical and moral fallacy that amounts to collective punishment of the civilian population."

"It doesn't matter what the definition of the government in Gaza is," Eitan said. "International law prohibits the damage of civilians, and Israel is responsible for distinguishing between terrorists and innocent men, women and children."

Gaza requires 197 megawatts of power, more than half of which is delivered over power lines from Israel. About 60 megawatts is generated by Gaza's single power plant, which runs on Israeli-delivered fuel.

"We don't agree with any policy that could further deteriorate the humanitarian situation in Gaza," said Nimr Hamad, a senior adviser to Abbas. "We do not accept that anyone should be punished, apart from the acts of Hamas and the other militants in Gaza."

Rice arrived for a two-day visit designed to push Abbas and Olmert toward completing an agenda for a U.S.-sponsored peace conference, tentatively scheduled for November in Washington.

Abbas has threatened in recent days to boycott the meeting unless a detailed framework can be established ahead of time, one that sets out a binding timetable for the creation of a Palestinian state. Olmert prefers to announce a general set of principles, calling them "intentions" rather than specific goals.

Asked if she supported the security cabinet decision, Rice reiterated the Bush administration's position that Hamas is a terrorist organization and "a hostile entity to the United States, as well." She said, "We will not abandon the innocent Palestinians in Gaza," and stated that Gaza and the West Bank "are both constituent entities in the to-be future Palestinian state."

But Hamad indicated that the security cabinet declaration is likely to cloud the talks, saying, "I do not know why the Israelis took such a decision with the presence of Dr. Rice."

In his statement, Barhoum, the Hamas spokesman, said the declaration was part of an Israeli campaign to "starve and make the Palestinian people of Gaza kneel down so they will revolt against Hamas" and "accept any American dictates from the talks this autumn."