Abbas insists will hold elections, truce strained

RAMALLAH, West Bank, Dec 18 (Reuters) Palestinian President Mahmoud Abbas today said he would press on with early elections as a truce between his security forces and the Hamas government came under strain in the Gaza Strip.

A Palestinian security source said Interior Ministry police had briefly exchanged fire with Abbas's presidential guard near the Foreign Ministry in Gaza. No one was hurt.

British Prime Minister Tony Blair, speaking after meeting Abbas in the West Bank city of Ramallah, said the international community should try to put together in the coming weeks a package of assistance to help the moderate leader.

Internal fighting, already at its worst level in years, escalated after Abbas called on Saturday for fresh elections, a move intended to break political deadlock with the Hamas Islamists and get Western sanctions on their government lifted.

A truce deal was struck late yesterday but sporadic violence soon broke out again in impoverished Gaza.

''As I told you in my speech, I am determined to go back to the people,'' Abbas said in a joint news conference with Blair.

''We have been in a crisis for nine months. People cannot wait for long. People are suffering from the economic social and security situation.'' Abbas insisted his Fatah movement was still open to the formation of a unity government of technocrats, saying in prepared remarks that this was the ''best way forward''.

SUPPORT FROM WEST The West has sought to bolster Abbas, who favours a two-state solution to end conflict with Israel.

The Hamas Islamists seek the Jewish state's destruction and have struggled to govern since taking office in March under the weight of Western sanctions that were imposed because of their refusal to recognise Israel and renounce violence.

Blair said the package of assistance, to go through Abbas's office, would include reconstruction and development aid. He did not give details.

''If the international community really means what it says about supporting people who share the vision of a two-state solution, who are moderate, who are prepared to shoulder their responsibilities, then now is the time for the international community to respond,'' Blair said.

''I believe this is so critical and urgent over the coming weeks.'' Blair, on a drive to revive West Asia peace negotiations, will hold talks later with Israeli Prime Minister Ehud Olmert.

Hamas, which surprised the once dominant Fatah to win elections in January, has said it would boycott new polls.

''Such a move would cast doubt on the entire legality of the Palestinian governmental system,'' the movement's supreme leader Khaled Meshaal, who lives in exile in Damascus, told the Italian daily Corriere della Sera in an interview.

''If civil war were really to erupt, it would not be our fault. Hamas will do all it can to avoid it.'' Officials from Hamas and Fatah were expected to meet on Monday to try to cement the Gaza ceasefire. Previous deals to end internal fighting this year have quickly collapsed.

In other violence in the strip, Palestinian medics and security sources said a school student had been wounded in a brief gunfight between members of Hamas and Fatah in Gaza City, while unknown gunmen had abducted a Fatah loyalist.

Fatah blamed Hamas, which had no immediate comment.

Forces loyal to Hamas and Fatah fought street and rooftop gunbattles across Gaza yesterday in which at least three people were killed and 20 wounded.

Hamas and Fatah tried for months to form a unity government to end their power struggle, but the talks foundered, partly over Hamas's insistence on not recognising Israel.

REUTERS LL HT1825