Dozens of masked gunmen claiming to be members of al-Qaida stormed an empty Gaza Strip beach resort this morning and blew up a reception hall, saying they were sending a message to a close ally of Palestinian President Mahmoud Abbas’, witnesses said.

Tens of thousands of Fatah supporters packed Gaza’s main soccer stadium today in a massive show of strength to boost the movement in its increasingly violent struggle against the Islamic militant group Hamas.

Hamas and Fatah gunmen exchanged fire on the streets of Gaza City and the West Bank city of Ramallah today, a day after unidentified gunmen shot at Prime Minister Ismail Haniyeh’s entourage.

Angry Hamas officials on Friday blamed a powerful Gaza strongman and senior Fatah official for a shooting attack on Ismail Haniyeh’s entourage that killed one of the prime minister’s bodyguards and wounded his son.

A Palestinian militant with ties to Hamas was killed yesterday in a car bomb in Gaza, unleashing factional unrest that left three others dead and 35 wounded, in the first direct threat to the Islamic group’s new government.

A PALESTINIAN militant with ties to Hamas was killed in a car bomb yesterday, unleashing factional unrest that left three others dead and more than 20 wounded - in the first direct threat to the Islamic group’s new government.

With a ribbon-cutting ceremony, the Gaza-Egypt border was reopening today – a milestone for the Palestinians who for the first time take control of a border crossing without Israeli veto powers and gain some freedom of movement.

A European Union official today said that the initial 20-person delegation of EU monitors for the Gaza-Egypt border crossing would be at their posts and operating for tomorrow’s historic opening.

The European Union today agreed to monitor a Gaza-Egypt border crossing that serves as the main gate to the world for Palestinians in the coastal strip as an EU delegation toured the area.

The US and its peace partners must help the Palestinians and Israelis resume talks aimed at achieving Palestinian statehood, Jordan’s prime minister told a top UN envoy yesterday.

Tens of thousands of Palestinians crowded into Gaza City’s small fishing harbour today to celebrate the impending Israeli withdrawal from the Gaza Strip, waving flags and hearing promises from their leader, Mahmoud Abbas, that the West Bank and Jerusalem will be next.

A major Palestinian militant group today declared it would fire no more rockets during Israel’s planned withdrawal from the Gaza Strip, after a deadly barrage inadvertently killed a three-year-old Palestinian boy.

Israeli deputy prime minister Shimon Peres said today the Palestinian government of Mahmoud Abbas is on the right track, despite last week’s Tel Aviv suicide bombing and other attempts by Palestinian militants to torpedo a fragile truce.

ISRAEL is going to slow its planned pullout from five West Bank towns after a day of violence strained an informal ceasefire, and it will stop the process altogether if Palestinians don’t halt all attacks, Israeli security officials said yesterday.

Israel will transfer security control over several West Bank towns to the Palestinians in coming days, Israel’s defence minister said today, hours after he met with a Palestinian negotiator to work out the details of Israel’s troop redeployment.

Interim Palestinian leader Mahmoud Abbas escaped unharmed after gunmen firing assault rifles burst into a tent in Gaza City where he was greeting people who came to mourn Yasser Arafat.

Palestinians need time to “build a new house” following the death of Yasser Arafat, and the key to a ceasefire with Palestinian militants is in Israel’s hands, said Gaza strongman Mohammed Dahlan in an interview published today.

Yasser Arafat, pressed by his parliament to commit to promised reforms in writing, has largely been evasive, disappointed MPs said today, after two meetings with the Palestinian leader.

Five masked men broke into a Gaza hospital today and shot dead a convicted collaborator who had been wounded in a grenade attack in his Palestinian prison just hours earlier.

Gaza strongman Mohammed Dahlan harshly criticised Palestinian leader Yasser Arafat, stopping just short of openly challenging his leadership while threatening a demonstration.

Gunmen loyal to Palestinian leader Yasser Arafat opened fire today on a conference of Arafat’s Fatah movement, in the latest sign of factional infighting among the Palestinian leadership.

Palestinian militants freed the Palestinian chief of police today hours after kidnapping him in an ambush that deepened the sense of chaos ahead of an announced withdrawal from Gaza by Israel.

THE militant group Hamas threatened revenge yesterday after Israel killed four of its members in a missile strike and declared anyone in the group a target for “liquidation.”

Israeli helicopters killed four Palestinian fighters, including a fugitive Hamas commander, in a missile strike in the Gaza Strip, hours after its army chief declared all Hamas members "potential targets for liquidation".

PALESTINIAN leaders were yesterday locked in a power struggle triggered by Yasser Arafat's attempt to hand control over all the security forces to a loyalist in the apparent hope of sidelining the US-backed Palestinian security chief, officials said.

Palestinian leaders were today locked in a power struggle triggered by Yasser Arafat’s attempt to hand control over all the security forces to a loyalist in apparent hope of sidelining the US-backed Palestinian security chief, officials said.

Palestinian leaders were today locked in a power struggle triggered by Yasser Arafat’s attempt to hand control over all the security forces to a loyalist in apparent hope of sidelining the US-backed Palestinian security chief, officials said.

PALESTINIAN Prime Minister Mahmoud Abbas convened an emergency cabinet meeting yesterday to respond to a Hamas suicide bombing that killed 20 people.

The expected handover of two West Bank towns to Palestinian control has been postponed after the two sides failed to agree on the transfer of security control.

Israel has agreed to hand four more West Bank towns to Palestinian control, a Palestinian official said tonight.

ISRAEL is proposing a troop pullout from two more Palestinian towns in the wake of meetings between the two sides' leaders and US President George W Bush, officials said yesterday.

The Israeli and Palestinian prime ministers held a two-hour meeting today, kicking off 10 days of international diplomacy aimed at strengthening a fragile Middle East cease-fire and advancing the US-backed “road map” peace plan.

ISRAELI Prime Minister Ariel Sharon will boycott the BBC when he visits London next week.

A DISPUTE over the release of Palestinian prisoners from Israeli jails deepened yesterday, as Israeli security officials warned that the Palestinian Authority will have to move soon against militant groups they say are using the break in Mideast fighting to rebuild.

Armed Palestinians have taken to the Gaza streets to protest against the arrest of several activists by Palestinian security forces.

The militant Islamic Jihad organisation has accepted a conditional three-month halt to attacks on Israelis, a leader of the group said today.

A US-sponsored peace initiative was finally moving forward after Islamic militants agreed to halt attacks on Israelis for three months and Israel said it would pull back forces from the Gaza Strip and Bethlehem.

US and Egyptian mediators intensified efforts to persuade militant Palestinians to agree to suspend attacks against Israelis in a bid to salvage a US-backed peace plan threatening to collapse under the weight of renewed violence.

PRIME MINISTER Ariel Sharon vowed yesterday, after an Israeli-Palestinian security meeting, to continue attacks on militants suspected of planning suicide bombings, a senior Israeli political source said.

Israel and the Palestinians are resuming top-level security talks despite a bloody week of bombings and missile strikes that left 60 people dead on both sides, officials said today.

Thousands of Hamas supporters have demonstrated against Palestinian prime minister Mahmoud Abbas’ peace efforts as leaders of the militant group said they were pulling out of talks aimed at ending attacks on Israelis.

A SENIOR Hamas official yesterday said the militant group is breaking off talks with the Palestinian prime minister on halting attacks on Israelis, a surprise reversal that throws into doubt a key component of a US-backed Mideast peace plan.

US President George Bush was optimistic today after yesterday’s landmark summit with the Israeli and Palestinian prime ministers.

Palestinian Prime Minister Mahmoud Abbas cancelled a visit to Beit Hanoun in northern Gaza today after Israeli tanks and bulldozers again moved into the town.