Hamas positive on unity coalition

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The Palestinian Prime Minister, Ismail Haniya of Hamas, has said he hopes there will be an announcement soon on a Palestinian unity government.

Talks with President Mahmoud Abbas, who heads the former ruling party Fatah, have been going on for months.

During a visit to the West Bank on Sunday, UK PM Tony Blair said a unity government that recognised Israel would allow Western donors to end a boycott.

Hamas backs a unity government, but a spokesman rejected the UK proposal.

We have gone a long way and expect within the next few days to create a constitutional mechanism that allows for a national unity government Ismail Haniya

Sami Abu Zuhri said the group was ready to ready to form a government with Fatah, but "not according to conditions that are dictated".

Mr Haniya described his talks with Mr Abbas on Sunday as "positive".

"We have gone a long way and expect within the next few days to create a constitutional mechanism that allows for a national unity government," he said.

Unresolved issues

It appears that Mr Haniya will hold onto the premiership in the any unity government that emerges.

Mr Blair spoke of a "window of opportunity" for peace <a onClick="javascript:launchAVConsoleStory('5331970'); return false;" href="http://news.bbc.co.uk/1/hi/help/3681938.stm">Blair and Abbas</a>

It is not clear that Fatah and Hamas have reached agreement on the key issues that separated them - a Hamas renunciation of violence, recognition of Israel and acceptance by Hamas of peace agreements signed by Israel and the Palestinians.

The international aid boycott on the Palestinian Authority was imposed after Hamas came to power earlier this year because of the group's refusal to renounce violence or recognise Israel.

The aid embargo has crippled the authority, which has been unable to pay its hundreds of thousands of employees.

In the Gaza Strip, living conditions for Palestinians have reached breaking point, the UN warned recently.

Israel has kept Gaza's borders largely sealed for months and conducts regular military operations, prompted in part by the capture of an Israeli soldier.

Talks prospects

Mr Blair's meetings with Mr Abbas and with Israeli Prime Minister Ehud Olmert appear to have brought the prospect of talks between the two men closer - both said they were ready for a talks without pre-conditions.

However, Israeli Foreign Minister Tzipi Livni told Israeli TV on Sunday that talks based on the internationally backed roadmap regional peace plan were out of the question as long as Hamas remained committed to violence.

Monday saw Israeli forces shoot dead a Palestinian man and wound two others near the West Bank town of Jenin, Palestinian doctors said.

Witnesses said the troops opened fire on a car travelling from the village of Roumane, killing the head of the local village council.

Israel radio reported that the army had detained 13 militants in several parts of the West Bank.

On Sunday, Palestinians said a teenager was killed and another wounded when an Israeli tank fired a shell in southern Gaza. The Israeli military said soldiers fired at Palestinians suspected of planting a bomb.