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Netanyahu vowed no talks if Fatah and Hamas unite for all Palestinians. In a speech at a conference for Israeli ambassadors, he said:
"If Hamas joins the Palestinian government, we will not hold negotiations with the Palestinian Authority....The peace process can only advance while maintaining security arrangements, which is becoming more difficult in light of the current situation in the region."
In April, Hamas and Fatah announced reconciliation and plans for transitional government ahead of presidential and parliamentary elections within a year to produce unity. Currently, they're set for May 2012.
Netanyahu reacted angrily saying, "choose between peace with Israel or peace with Hamas." Reconciliation shows "weakness," he added. "There cannot be peace" if both sides unite. "What happened....in Cairo is a tremendous blow to peace and a great victory for terrorism."
Despite reservations on both sides, signing ceremony comments signaled hope. Abbas suggested turning a page, saying:
"Four black years have affected the interests of Palestinians. Now we meet to assert a unified will. Israel is using the Palestinian reconciliation as an excuse to evade (peace. It) must choose between peace and settlement."
Hamas leader Khaled Mashaal said:
"Hamas was ready to pay any price for internal Palestinian reconciliation. The only battle of the Palestinians is against Israel. Our aim is to establish a free and completely sovereign Palestinian state on the West Bank and Gaza strip, whose capital is Jerusalem, without any settlers and without giving up a single inch of land and without giving up on the right of return."
In mid-December, Abbas and Mashaal met again in Cairo after Hamas and Islamic Jihad announced Palestinian Liberation Organization (PLO) membership plans.
They'll form a committee ahead of next May's presidential, parliamentary and Palestinian National Council (PLC) elections. Once held, they'll join the PLO as sole legitimate Palestinian representative.
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