Contradicting earlier statements, it is now being reported that while Hamas will still head the Palestinian Authority (PA), the current prime minister, Ismail Haniyah, will step aside and appoint a replacement.



Since Haniyah was elected to office, the western community did not recognize the legitimacy of a Hamas government, resulting in an economic boycott against the PA and its institutions.



Despite formidable pressure on the current Hamas-led administration, Prime Minister Ismail Haniyah refused to comply with American dictates, stating his party will never recognize Israel’s right to exist. Haniyah scoffed at the American-led monetary sanctions, and tried to raise funds among Arab nations. His attempts were not sufficient, and many employees of PA institutions stopped receiving their regular monthly salaries. The lack of funds led to widespread discontent and violent demonstrations against the elected government.



Following the reported coalition deal, Hamas leaders are signaling that they will remain the ruling party and that Haniyah has already selected a new prime minister. The candidate must be approved by PA Chairman Mahmoud Abbas (Abu Mazen), who also serves as head of the rival Fatah Party.



It was also reported that Haniyah and Abu Mazen were scheduled to meet in Gaza on Monday for a joint press conference, but the event has been postponed, due to “technical reasons.”



In order to lift the American-led monetary embargo against the PA, analysts say that Hamas will have to exhibit a modicum of flexibility. They will have to show willingness to comply with the demands of the Quartet forum, which include recognition of Israel's right to exist, compliance with previously signed agreements, disarming terror organizations, and halting terror attacks.



But analysts in Israel warn that if and when Hamas does express such flexibility in its statements, it will be nothing more than meaningless verbiage.



Palestinian Media Watch was quick to point out recently that even PA Chairman Mahmoud Abbas, who openly calls for recognition of Israel in his English-language statements, has a far different message when addressing his constituents in Arabic.



On October 4, Abbas told US Secretary of State Condoleezza Rice that he will fire the Hamas-led government before the end of the month unless they accepted Israel's right to exist." In return, Secretary Rice expressed Washington's full support for the PA Chairman and for his Fatah party in their confrontation with Hamas."



But the day before, on October 3, Abbas told the Arab world that not only doesn't Hamas have to recognize Israel but even Fatah, which he heads, is not required to recognize Israel.



In an interview broadcast on Al-Arabiya [based in Dubai] and Palestinian Authority television, Abbas said, "Hamas is not required, Hamas is not required to recognize Israel... It is not required of Hamas, nor of Fatah, nor of the Popular Front to recognize Israel."

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Abbas went on to say that government officials must “recognize their counterparts” in order to “solve people’s problems.” PMW's Itamar Marcus and Barbara Crook noted that this does not constitute an inherent recognition of Israel, just a functional recognition that allows the PA to get what it needs. Abbas reiterated:



“I do not demand of Hamas nor any other to recognize Israel. But from the government that works with Israelis in day to day life, yes.”



Other Israeli observers have noted even if the PA commits itself to discontinue terror attacks and disarm terror groups, a specific definition of what constitutes a terror organization or a terror attack was not imposed by the Quartet. The Hamas views its attacks against Israeli civilians as legitimate freedom operations, and it would never disarm its own militia.



Israeli government officials continue to embrace Abbas as a moderate voice in the PA, viewing him as a “partner” with whom an agreement can be reached.



Since Haniyah’s election to office, Prime Minister Ehud Olmert has refused to recognize the Hamas-led government and all diplomatic channels between the Prime Minister’s Office and Haniyah have been closed. Limited contacts were held on a ministerial level toward a meeting between Olmert and Abu Mazen, but these efforts fell through following the kidnapping of Corporal Shalit.



Baruch Gordon contributed to this article.