Palestinian showdown looms as Hamas rejects moderate’s ultimatum

THE Palestinian Authority is facing a political showdown after Hamas rejected an ultimatum from moderate President Mahmoud Abbas to sign on to a plan implicitly recognising Israel.

But in a rare dose of good news, some Palestinian public workers began drawing money from banks, the first time they have been paid in three months, a result of a Western aid cut-off.

Mr Abbas will order a referendum on a plan calling for a Palestinian state in the West Bank, Gaza Strip and east Jerusalem alongside Israel, a Fatah official said. Mr Abbas set a Tuesday deadline for Hamas agreement.