GAZA CITY, 24 June 2006 — Palestinian Prime Minister Ismail Haniyeh of Hamas and President Mahmoud Abbas of Fatah said yesterday they would try to resolve their differences face-to-face over a statehood proposal that implicitly recognizes Israel.

Haniyeh said a few sticking points remained over the document penned by Palestinian prisoners in an Israeli jail, but a Fatah spokesman sought to lower expectations for a breakthrough when the leaders meet later in Gaza.

Haniyeh made clear that Hamas, which is sworn to Israel’s destruction, would not abandon its stance on the Jewish state. While expressing hope for a deal, which could lead to a unity government, Abbas said he would push ahead with a July 26 referendum on the proposal if an agreement could not be reached.

Tensions have escalated between Fatah and Hamas since Abbas set the referendum on the proposal, which calls for a Palestinian state in all the West Bank and Gaza Strip, land captured by Israel in the 1967 Middle East War.

Some fear the power struggle between Fatah and Hamas could lead to a civil war. Hamas has branded the referendum an attempt to overthrow its three-month-old government.

Haniyeh and Abbas last met face-to-face more than a week ago. Since then, top Hamas and Fatah negotiators have been trying to resolve their differences.

Haniyeh said negotiators “had come a long distance and what (differences) remain are few.” But when asked if Hamas was prepared to accept a two-state solution to the conflict, as called for under the prisoners’ document, Haniyeh said: “There was no dramatic change on the positions of the factions, including Hamas.” Fatah spokesman Tawfiq Abu Khoussa was cautious “despite the positive atmosphere and the good intentions,” adding: “The points of difference have remained unresolved.” Hamas has said it wants the proposal to explicitly reject recognition of Israel. Abbas, a moderate who favors peace talks with the Jewish state, is unlikely to agree to such wording.

Differences also remain over who would handle any negotiations with Israel, and over the makeup of any unity government. Some in Fatah are pushing for a government of technocrats, a demand rejected by Hamas, which has insisted on leading any coalition Cabinet.

The Bush administration has said it would curtail contacts with Fatah and other parties if they joined a Palestinian government led by Hamas. The factions are also divided over whether fighters should be asked to limit their attacks to inside the occupied West Bank. Some in Fatah see the referendum as a way to oust the government and reverse a Western aid embargo that has brought the Palestinian Authority to the brink of collapse.

The West imposed sanctions after Hamas refused to recognize Israel, renounce violence and accept past peace accords.

But in a blow to Abbas, a leading pollster said on Monday that Palestinians might not pass the referendum even though they support the proposal because they are unhappy with the president’s power struggle with the government.

In another development, Palestinian groups yesterday announced that they had severed their commitment to a de facto truce in anti-Israeli attacks in order to avenge “massacres” committed by Israel.

The Al-Aqsa Martyrs Brigades, loosely affiliated to Fatah, and the armed wing of the governing Hamas were among those groups that delivered the announcement at a news conference in the West Bank. Fighters from the armed wing of Islamic Jihad and the Popular Front for the Liberation of Palestine were also at the conference in the town of Ramallah.