Palestinian PM quits, 'terrorist group' Hamas poised to take power

GAZA - Palestinian Prime Minister Ahmed Qurie has resigned after the Islamic militant group Hamas claimed victory over his ruling Fatah party in a parliamentary election, a senior official said.

Qurie and his cabinet tendered their resignations to President Mahmoud Abbas, the official said. Fatah, which advocates a two-state solution to the Middle East conflict, had long dominated. Hamas, sworn to Israel's destruction, said it won Wednesday's vote, and a Fatah official acknowledged it was true.

"Hamas has won more than 70 seats in Gaza and the West Bank, which gives it more than 50 per cent of the vote," said Ismail Haniyeh, a leader of the militant group dedicated to Israel's destruction.

Haniyeh said he based the numbers on initial ballot counts from Hamas representatives at polling stations.

A senior Fatah official said it appeared Hamas was on course to form the next government. A senior Hamas official held out the possibility of a power-sharing coalition with Fatah and other parties.

"We are convinced we will be partners with the other factions," the Hamas official said. "We will study the issue of forming a government after consultations with the Palestinian leadership."

The Central Election Commission said the vote count had not been completed and that it would make an official announcement at 7pm (6am Fri NZT) Thursday.

Three exit polls had forecast a slim Fatah victory, indicating that Hamas - which is listed as a terrorist organisation by the United States, Israel and the European Union - was set to win at least 53 of the 132 seats against 58 for Fatah. Turnout was 78 per cent of the 1.3 million voters.

Hamas, which carried out nearly 60 suicide bombings in Israel since a Palestinian uprising began in 2000, has capitalised on internal Fatah divisions and the long-dominant party's reputation for corruption and mismanagement.

"This is a victory of the Palestinian people who voted against the occupation (by Israel in the West Bank), who voted for resistance, who voted for a new political system based on political partnership," Haniyeh said.

Israel has said future peacemaking would be in jeopardy if Hamas took a role in government.

US President George W. Bush said on Wednesday he would not deal with Hamas, which Washington regards as a terrorist group, unless it renounced its policy of seeking Israel's destruction.

The United States, main sponsor of an international "road map" for peace between Israel and the Palestinians, said it would accept the election results as a reflection of the will of the people but made clear Abbas should keep Hamas in opposition.

"A political party, in order to be viable, is one that professes peace, in my judgement, in order that it will keep the peace," Bush told the Wall Street Journal in an interview.

"And so you're getting a sense of how I'm going to deal with Hamas if they end up in positions of responsibility. And the answer is: 'Not until you renounce your desire to destroy Israel will we deal with you'."

Israel's acting Prime Minister Ehud Olmert, who took over from the ailing Ariel Sharon earlier this month, said: "We will not negotiate with a government that does not keep to its most basic commitment - fighting terror."

Abbas, elected a year ago after the death of Yasser Arafat, the iconic first Palestinian president, said the Palestinian Authority was ready to resume long-stalled talks with Israel even if Hamas joined his government.

Hamas has largely respected a truce with Israel for nearly a year.

"We are approaching a new period and we hope that the international community will help us return to the negotiating table," said Abbas, welcoming the peaceful nature of the vote.

Abbas has voiced hopes that once Hamas enters parliament it might be prepared to relinquish its weapons.

Despite signals this week that it might be open to indirect talks with Israel, Hamas said it would not change its charter or give up its weapons but would consider joining a coalition government with Fatah.

Gaza Strip and West Bank towns filled with the sound of car horns and bursts of gunfire poured into the night sky as Hamas and Fatah supporters claimed victory.

"Our choice is Islam and we want change as soon as possible," Hamas backer Nidal al-Jaberi said in Hebron.

A few streets away, a gunman, Mohammed Amr, said: "This result shows that Fatah will always be on top."

Voting was orderly despite weeks of armed chaos, notably in areas and more than 400 candidates running locally in the first parliamentary elections since 1996. About 900 foreign observers, led by former US President Jimmy Carter, were present.

Israeli troops pulled back from West Bank population centres to avoid any accusations of interfering in the polls.

- REUTERS