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Edition: U.S. Article Comments (7) Full Focus Editor's choice A selection of our top photos from the past 24 hours. Full Article Follow Reuters Facebook Twitter RSS YouTube Read Exclusive: Facebook investors look for exits 9:23am EDT Storms knock out TVA nuclear units, power lines 27 Apr 2011 Tornadoes and storms rip through South, more than 220 dead | 11:40am EDT Honolulu has best air in U.S., Los Angeles and others the worst: report 5:47am EDT William and Kate "deeply touched" by well-wishers | 8:50am EDT Discussed 150 Texas governor calls for prayers for rain 139 Obama sees no magic bullet to push down gas prices 93 White House releases longer Obama birth certificate Watched Fire ants form rafts to defy floods Tue, Apr 26 2011 Nokia announces layoffs, outsourcing Wed, Apr 27 2011 Simon the robot requests your attention Tue, Apr 26 2011 Surprise Palestinian unity deal challenges Israel Tweet Share this By Jeffrey Heller JERUSALEM (Reuters) - Israel said on Thursday a Palestinian unity deal would sabotage prospects for peace and stemmed from panic by Hamas and Western-backed President Mahmoud Abbas over popular uprisings in Syria and Egypt. The... Email Print Related News Israel's Peres: Palestinian unity deal a fatal mistake 6:28am EDT Abbas hints talks still possible with Israel 7:15am EDT Egypt sending team to help realize Palestinian deal 10:26am EDT Analysis & Opinion China-Pakistan-Afghanistan-building economic ties West can find ways to pressure Syria Related Topics World » Egypt » Syria » Azzam al-Ahmad, head of the Fatah group (L), changes seats with Mousa Abu Marzook (C), a senior member of Hamas, near Mahmoud al-Zahar (R), a co-founder of Hamas and a member of the Hamas leadership in the Gaza Strip, during a news conference in Cairo, April 27, 2011. Credit: Reuters/Asmaa Waguih By Jeffrey Heller JERUSALEM | Thu Apr 28, 2011 10:26am EDT JERUSALEM (Reuters) - Israel said on Thursday a Palestinian unity deal would sabotage prospects for peace and stemmed from panic by Hamas and Western-backed President Mahmoud Abbas over popular uprisings in Syria and Egypt. The surprise reconciliation between the Islamist group that runs Gaza and Abbas's Fatah movement that exercises limited self-rule in the West Bank presented a new challenge for Israel as it mounts a diplomatic drive against a Palestinian campaign to win U.N. recognition of statehood ambitions in September. "The agreement between Fatah and the terror organization Hamas is a fatal mistake that will prevent the establishment of a Palestinian state and will sabotage chances of peace and stability in the region," Israeli President Shimon Peres said. Peres, a respected elder statesman, said in a statement he feared Hamas would ultimately take over the West Bank after a Palestinian election envisaged by the unity deal and that the influence of Hamas ally Iran would be strengthened as a result. Peace talks between Israel and Abbas's administration resumed in September in Washington but quickly fizzled after Prime Minister Benjamain Netanyahu refused to extend a partial building freeze in Jewish settlements in the occupied West Bank. Speaking publicly for the first time since the reconciliation pact was unveiled on Wednesday, Abbas signaled negotiations with Israel would still be possible during the term of a new interim government formed under the agreement. He said the Palestine Liberation Organization (PLO), which he heads and to which Hamas does not belong, would still be responsible for "handling politics, negotiations." But Abbas said Palestinian unity is vital. "Dislike, agree or disagree (with Hamas) -- they're our people. You, Mr Netanyahu (are) our partner," Abbas, speaking in English, told Israeli peace activists who met him. Israeli leaders have said they cannot talk to Hamas, which has spurned Western demands to renounce violence, recognize Israel and accept existing interim peace agreements. "This (unity) deal ... stems from panic -- a huge panic," Foreign Minister Avigdor Lieberman told Army Radio, a view echoed by Defense Minister Ehud Barak in a separate interview. "(Hamas leader) Khaled Meshaal, sitting in Damascus, sees his patron President (Bashar) al-Assad shooting up mosques, tanks firing deliberately (at civilians), and understands the ground is burning under him," the far-right minister said. DIVIDE In the West Bank and Gaza Strip, Palestinians said the unity accord was born of a deep-seated popular desire to overcome the Hamas-Fatah divide and reflected frustration over the slow move toward statehood. "The signing of the agreement is very, very good and I pray to God to make it succeed because we are one people in one trench," said Salman al-Dairi, 50, who described himself as a Fatah supporter in Gaza. Lieberman also said Abbas had "leaned for years" on Hosni Mubarak, the Egyptian president toppled by a pro-democracy revolt in February, and now felt his own position was shaky. The result, according to Lieberman, was an alliance between Palestinian factions that "crossed a red line" for Israel. He held out the possibility of withholding Palestinian tax revenues that Israel transfers to the Palestinian Authority and a suspension by Congress of crucial financial aid to Abbas's administration if it shares power with Hamas. Abbas has said he will not return to U.S.-sponsored peace negotiations until settlement-building is halted in the West Bank and in East Jerusalem, areas Israel captured in a 1967 war and which Palestinians want as part of a future state. Israel has called that an unacceptable pre-condition, and has been urging Western governments to oppose Palestinian plans to ask the U.N. General Assembly in September to recognize a Palestinian state in all of the West Bank and Gaza. Next month, Netanyahu is due to address a joint meeting of the U.S. Congress, a speech that had been widely expected to include new, interim steps toward a peace agreement. Speaking on Wednesday after the unity deal was revealed, Netanyahu said: "The Palestinian Authority must choose either peace with Israel or peace with Hamas. There is no possibility for peace with both." But Barak, who heads a small center-left faction in Israel's rightist coalition, questioned whether the Palestinian unity deal, which charts the formation of an interim administration and elections later this year, would be implemented. Hamas won the last Palestinian legislative election held in 2006. A unity government it formed with Fatah did not last long, collapsing into a brief civil war in which the Islamists seized Gaza in 2007. Hamas's founding charter calls for Israel's destruction but it has raised the possibility of a long-term ceasefire if a Palestinian state is created in the West Bank and Gaza. (Additional reporting by Mohammed Assadi in Ramallah and Nidal al-Mughrabi in Gaza; editing by Mark Heinrich) World Egypt Syria Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (7) Eric.Klein wrote: Not seeing the challenge to Israel. Hamas will not negotiate or recognize Israel PA has negotiated but says it is PLO that will run negotiations Deal with Hamas includes “restructuring the PLO” So who then can negotiate a real and lasting peace with Israel? The pre -Hamas PLO we have now? The restructured-PLO that will include Hamas? When will the missiles stop and chance for peace begin? Apr 28, 2011 8:27am EDT -- Report as abuse Ocala123456789 wrote: unity is good… peace needs to come in the hearts of both Palestinians and Israelis… this is the only solution… Apr 28, 2011 8:46am EDT -- Report as abuse cautious123 wrote: The missiles will stop when the occupation stops. There is a logical order to this mess–Israel steals land, Palestinians fight back. If Hamas were doing the exact same thing during WW2, we’d be calling it the Resistance. Hamas are the elected representatives of Gaza, and the elections were overseen by members of the UN and the US. Israel fears Palestinian unity because it may force peace, which Israel really doesn’t want. The only people who can and will sabotage peace will be the Israeli government. Apr 28, 2011 9:17am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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