Annan voices support for Palestinian unity govt

RAMALLAH, West Bank, Aug 30 (Reuters) UN Secretary General Kofi Annan today voiced support for the formation of a Palestinian unity government that Palestinian leaders hope could ease foreign sanctions imposed after Hamas won elections.

''This is a very important process,'' he said after meeting President Mahmoud Abbas, who has renewed efforts to create a partnership between his Fatah movement and the governing Hamas militant group.

''If the Palestinians can unite around a common, realistic programme and if it can help bring the security situation under control, it would be a very positive development indeed and the United Nations will do whatever it can to support you,'' he said.

Western donor nations have been withholding aid to the Palestinian Authority since Hamas came to power after a January election and rejected their demands that it recognise Israel, renounce violence and accept previous interim peace deals.

That has deepened economic crisis in the West Bank and Gaza Strip, where government workers have gone unpaid since March.

Abbas said he would go to Gaza later in the day to discuss a unity government with Hamas Prime Minister Ismail Haniyeh. ''We hope we will reach a result as soon as possible,'' he said.

A unity government must include ''all political colours. It should be capable of restoring relations internationally and regionally and it should have a political agenda'', he said.

WORKERS PROTEST Hundreds of civil servants, organised by a Fatah-led union, held a rally for back wages outside Abbas's office in the West Bank city of Ramallah before his meeting with Annan.

Abbas, addressing the crowd, accused Hamas and militants of working against national interests by refusing to soften their policies towards Israel.

''He who wants a government that serves the people, should really seek a government that is capable of ending the siege, capable of protecting the people's interests and capable of paying salaries,'' Abbas said.

Israel, which pulled troops and settlers out of the Gaza Strip last year, renewed military ground operations in the territory two months ago after militants from Hamas and two other groups seized a soldier in a cross-border raid.

Nearly 200 Palestinians, about half of them civilians, have been killed in the offensive, which Israel says is also aimed at stopping rocket attacks from Gaza on its southern towns.

''Pointless rockets should stop because they serve no interest ...(and) harm the interests of our people,'' Abbas said.

Civil servants plan to go on an open-ended strike on Saturday and have threatened to shut down government institutions, save for hospitals and border crossing points.

Hamas had urged its employees not to strike.

Haniyeh said in a statement demonstrations should be directed against ''the real address which imposes the siege on our people'', a reference to Israel.

REUTERS KR PC1929