Three hurt as Hamas and Fatah gunmen open fire

HAMAS and Fatah gunmen exchanged fire yesterday as the long-dominant Palestinian faction was threatened with a violent backlash to its crushing election defeat by the Islamic militant group.

Hamas, whose shock parliamentary election victory changed the face of Palestinian politics and put Middle East peacemaking deeper in limbo, said it would hold talks soon with President Mahmoud Abbas on "political partnership."

But Fatah leaders have rejected a coalition with Hamas and thousands of Fatah supporters, including gunmen firing into the air, marched in the Gaza Strip in protest at the idea. Thousands of Hamas backers celebrated their victory in separate rallies.

The militant al-Aqsa Martyrs Brigades, part of Fatah, issued a statement threatening to "liquidate" the faction's leaders if they joined a Hamas-led administration.

Referring to Hamas, Mr Abbas said: "We are consulting and in contact with all Palestinian groups and definitely, at the appropriate time, the biggest party will form the cabinet."

In the first armed clash between Hamas and Fatah militants since Wednesday's vote, three people were wounded in the southern city of Khan Younis.

The violence erupted after Hamas militants were angered by a Fatah-appointed Muslim preacher during Friday prayers.

Israel has ruled out negotiations with any Palestinian administration involving Hamas, which is sworn to Israel's destruction.

At the World Economic Forum in Davos, Switzerland, Israel threw into doubt its willingness to continue the transfer of customs revenue to an aid-dependent Palestinian Authority.

Palestinian Economy Minister Mazen Sinokrot said the Israeli transfers amounted to monthly revenues exceeding $40 million (€33m) to $50m (€41.3m), money needed to help pay salaries for 135,000 government employees.

An opinion poll in Israel's Yedioth Ahronoth newspaper showed 48% of Israelis favoured talking to a Hamas-led government.

Israel's interim prime minister Ehud Olmert has hinted at unilateral moves to set a border with the Palestinians on Israeli terms.

Senior Hamas official Moussa Abu Marzouk said the movement had a "clear vision for a government of unity - one in which everyone joins."

But some 10,000 Fatah supporters marched in a series of rallies in the central Gaza Strip in rejection of a coalition with Hamas and Fatah's veteran leadership.

Some 20,000 Hamas supporters held a celebration rally in Khan Younis refugee camp.

Hamas's capture of 76 seats in the 132-member parliament was widely seen as a political earthquake in the Middle East, triggered by voter disenchantment with corruption and the failure of peace efforts.

Ismail Haniyeh, who headed Hamas's list of candidates, said in Gaza City he and Mr Abbas had agreed to meet when the president visits the city in two days.

In remarks to reporters later in the West Bank city of Ramallah, Mr Abbas made no reference to a meeting with Mr Haniyeh.

Hamas has mostly respected a truce for nearly a year, but says it will not give up its guns or its charter demand for an Islamic state to encompass Israel, the West Bank and Gaza.