Tensions rise after Hamas aide caught with cash

GAZA, May 19 (Reuters) Rival Palestinian forces faced off briefly at Gaza's border crossing with Egypt today after a Hamas official was caught with 639,000 euros hidden in his clothing, authorities said.

Palestinian Prime Minister Ismail Haniyeh vowed during today's prayers not to disband a new Hamas-led security force and said he was prepared to increase its size in defiance of President Mahmoud Abbas and the Bush administration.

About 100 Hamas gunmen raced to the Rafah crossing, which is guarded by Abbas's presidential guard, raising fears of fresh Palestinian infighting. Abbas's elite guard also called in reinforcements.

The standoff followed gunbattles overnight in Gaza City between police and a new security force set up by the Hamas-led government in defiance of Abbas. Four people were hurt in the first fighting since the force deployed on Wednesday.

The clashes sent terrified residents fleeing from the streets, where tension has soared amid fears of civil war. US Secretary of State Condoleezza Rice called the emergence of rival security forces a ''dangerous situation''.

''We do not intend to make one step backward. The force will stay,'' Haniyeh said during today's prayers in Gaza City. ''Their task is to protect internal security and if there will be a need to increase its number, we will do it.'' Sami Abu Zuhri, the Hamas spokesman who was caught at Rafah, initially refused to leave the border terminal without the money, which was confiscated by Palestinian customs agents.

But witnesses said he later left and the gunmen withdrew.

Hamas lawmaker Mushir al-Masri said Abu Zuhri was carrying ''donations from Arab nations to the Palestinian government and it was meant to be paid for prisoners in Israeli jails.'' Abu Zuhri, who is the spokesman of Hamas rather than the government, told Reuters he left after an agreement was reached for the money to ''be released soon''.

The Palestinian Authority is facing a financial crisis after international donors suspended aid because of the Hamas-led government's failure to renounce violence and recognise Israel since coming to power in March.

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