Fragile ceasefire takes hold in Gaza

GAZA, Dec 18 (Reuters) A shaky ceasefire took effect today between Palestinian rivals Hamas and Fatah after days of heavy fighting pushed the Gaza Strip to the brink of civil war.

It was unclear whether the truce would last as groups of heavily armed gunmen from both sides continued to roam the tense streets of the impoverished coastal strip.

Fighting escalated after President Mahmoud Abbas of Fatah called on Saturday for fresh presidential and parliamentary elections, a move intended to break political deadlock with the Hamas government and lift Western sanctions on its administration.

There were sporadic exchanges of fire overnight, including an incident in which two members of a Hamas-led police force were wounded moments after the agreement was announced. Previous deals to end internal fighting this year have fallen apart.

Forces loyal to Hamas and Fatah fought street and rooftop gunbattles across Gaza yesterday. Gunmen also fired mortars at Abbas's offices while his forces seized two Hamas ministries. Abbas was not in Gaza at the time.

At least three people were killed and 20 wounded.

British Prime Minister Tony Blair, on a drive to revive Middle East peace negotiations, arrived in Israel just before Hamas and Fatah announced the deal yesterday night.

Blair will hold talks today with Abbas in the occupied West Bank and Israeli Prime Minister Ehud Olmert in Jerusalem.

The Hamas Islamists, which surprised the once dominant Fatah to win January elections, has said it would boycott new polls. The two factions had tried for months to form a unity government to end a bitter power struggle, but talks foundered, partly over Hamas's insistence on not recognising Israel.

The ceasefire deal followed heated accusations yesterday by Foreign Minister Mahmoud al-Zahar, a senior Hamas leader, that Abbas's security men had launched a ''military coup'' against the Hamas government in Gaza.

DISPUTED TRUCE The truce calls for the rival factions to pull back their fighters and release men abducted by each side. It also calls for Abbas's security forces to end a day-long siege of the two Hamas-led government ministries.

Fatah said the agreement does not call for a resumption of stalled unity government talks, as asserted by Hamas, which took control of the Palestinian Authority in March.

Abbas has said early elections should be held as soon as possible. But he also said efforts to form a unity government should continue.

The Palestinian basic law, which acts as a constitution, has no provision for early elections. Fatah says Abbas can call them through a presidential decree. Hamas says that would be illegal.

Hamas has insisted it will never recognise the Jewish state, making it unclear how any unity government could get off the ground and satisfy Western powers.

In talks with Abbas, a political moderate, Blair will discuss ways to expand a European aid programme for the Palestinians that bypasses the government.

Blair has set great store on reviving West Asia peacemaking before he leaves office next year.

Israeli-Palestinian peace talks collapsed six years ago and the prospect for restarting negotiations dimmed further when Hamas took office. The movement seeks Israel's destruction.

REUTERS MS PM1205