President Mahmoud Abbas’ efforts to set up a Palestinian government acceptable to the West suffered a new setback when the prime minister from the Islamic militant Hamas group said he would not lead a coalition that recognised Israel.

President Mahmoud Abbas’ bumpy efforts to set up a Palestinian government acceptable to the West suffered a new setback today, after the prime minister from the Islamic militant group Hamas said he would not lead a coalition that recognises Israel.

The top Hamas leader today told Mahmoud Abbas that the Islamic militant group was ready for a political partnership after trouncing the Palestinian leader’s Fatah Party in legislative elections – a shocking upset sure to throw Middle East peacemaking into turmoil.

Palestinian leader Mahmoud Abbas is having trouble imposing order in unruly Gaza, and he is cut off from his people by a wall of bodyguards.

Palestinians will not open their border with Egypt unilaterally, Palestinian leader Mahmoud Abbas said today, answering Israeli concerns and illustrating how much the poverty-stricken seaside territory remains dependent on its Jewish neighbour, despite Israel’s pullout.

Palestinian leader Mahmoud Abbas is ready to honour the security commitments in an internationally backed peace plan, he said today, adding that he hopes to resume peace talks with Israel soon.

THE Palestinian authority plunged deeper into crisis yesterday when parliament called on Yasser Arafat to accept the resignation of his prime minister and militants kidnapped a senior official in the West Bank.

The Palestinian parliament today called on Yasser Arafat to accept the resignation of his prime minister and cabinet, adding to a week of political chaos and violence in the West Bank and Gaza Strip.

Palestinian leader Yasser Arafat today ordered an investigation into the shooting of a key critic of his unrelenting grip on power as Palestinian officials warned of dire consequences for law and order in their territory.

PALESTINIAN leader Yasser Arafat declared the roadmap for peace plan dead as his rival, Prime Minister Mahmud Abbas, said he would quit if he doesn't win a vote of confidence.

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.

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.

ISRAELI troops demolished the West Bank home of a teenage suicide bomber yesterday after two bombing attacks prompted Israeli warnings that peace moves will fail if the Palestinians do not start dismantling militant groups.

Israel’s Cabinet voted today to release up to 100 jailed Islamic militants ahead of Prime Minister Ariel Sharon’s visit to the US.

PRIME Minister Mahmoud Abbas could be ousted by the Palestinian parliament unless he returns from Washington with substantial concessions from Israel, the Palestinian information minister said yesterday.

The Israeli military said it had arrested two suspected suicide bombers in the West Bank today, as Palestinian Prime Minister Mahmoud Abbas prepared to set off on a trip to Washington.

The Palestinian Authority is trying to convince militants to extend their ceasefire indefinitely, an official has said.

A KIDNAPPED taxi driver freed in an Israeli commando raid was greeted with a street party yesterday and the military said his captors were not backed by major Palestinian militant groups.

A PALESTINIAN attacker stabbed a man to death and wounded another in Tel Aviv yesterday in what police said was the first terror attack in an Israeli city since militant groups declared a truce June 29. Israeli Foreign Minister Silvan Shalom warned the Palestinians were running out of time to crack down on the militants.

A Palestinian stabbed an Israeli to death and injured another in Tel Aviv in what police called the first terrorist attack since June’s truce.

Israeli Prime Minister Ariel Sharon today urged European leaders to cut off ties with Yasser Arafat, and a key Sharon aide said Israel would consider deporting the Palestinian leader if he continued trying to “scuttle the peace process”.

The Israeli and Palestinian prime ministers were meeting today in a new climate of hope after a Palestinian terror truce, removal of Israeli tanks and roadblocks in Gaza and a deal to give the Palestinians security control over the West Bank town of Bethlehem.

Egyptian mediators made a final push today to persuade Palestinian militants to halt attacks on Israelis.

ISRAEL tried to kill the public face of Hamas yesterday, wounding Palestinian militant Abdel-Aziz al-Rantissi in a helicopter strike that brought swift calls for revenge and may shatter a US-backed peace plan.

Three Palestinians disguised as Israeli soldiers sneaked into an army post today, gunning down four Israelis before they themselves were killed by troops - the first deadly attack since last week’s Middle East summit.

ISRAEL and the Palestinians put a positive gloss yesterday on talks between their prime ministers, setting the tone for a three-way summit led by US President George W Bush on promoting a peace “road map”.

A Palestinian terror group linked to Yasser Arafat tonight threatened to scupper Mideast peace negotiations that Israeli and Palestinian leaders believed were making progress

A HINT of flexibility by US President George W Bush yesterday allowed Israeli Prime Minister Ariel Sharon to accept the road map to Palestinian statehood.

Israeli Prime Minister Ariel Sharon announced today that he is prepared to “accept the steps prescribed” in the road map peace plan that will lead to a Palestinian state and he would present it to his Cabinet for approval.

Palestinian officials said today that they would not accept any changes to the US-backed road map to peace after Israel signalled it might support the plan, but only if some of its objections were taken into account.

The Israeli and Palestinian prime ministers will meet by the end of the week in the highest-level encounter in three years, officials have confirmed.

MAHMOUD ABBAS wears suits. Except for a well-cropped band of hair on his upper lip, he’s always clean-shaven.

INCOMING Palestinian Prime Minister Mahmoud Abbas set out his list of Cabinet ministers, expecting quick approval to trigger the presentation of a US-backed peace plan, but opposition to some of his choices emerged yesterday.

Palestinian Prime Minister-in-waiting Mahmoud Abbas set out his list of Cabinet ministers today, expecting quick approval to trigger the presentation of a US-backed peace plan, but opposition to some of his choices emerged.

Yasser Arafat, under growing international and domestic pressure to carry out reforms, admitted today that he has made mistakes, promised to restructure his government and said there would be elections.