PALESTINE - Feb 15 - Abbas Asks Haniyeh To Form Govt.

The Hamas Cabinet resigns to make way for a new unity government with the rival Fatah of moderate Palestinian Pres Mahmoud Abbas. Abbas asked PM Ismail Haniyeh to form the new Cabinet despite what his aides said was a warning by the US that Washington would shun the new coalition. Abbas presided over a brief ceremony in which Haniyeh submitted the resignation of his Cabinet, ending months of stop-and-go power-sharing negotiations. Abbas then asked Haniyeh, as head of a caretaker government, to form a Hamas-Fatah coalition within five weeks. In his letter of appointment, Abbas said the new government must "respect" international agreements, a wording that implies acceptance of Israel but falls short of international demands of an explicit recognition. In Washington, US State Department spokesman, Sean McCormack would not confirm the report of a possible US boycott, saying only that the US will not judge a Palestinian government until it has been formed, and that its performance would be reviewed. Abbas had been trying for months to form a coalition between Hamas and Fatah, in hopes such a coalition could persuade the West to end its crippling aid boycott of the Hamas-led government. Last week, in power-sharing talks hosted by Saudi Arabia, he was unable to wrest a clear commitment from Hamas that it will recognise Israel. Instead, he had to settle for the vague promise that Hamas will "respect" previous peace deals with the Jewish state, implying recognition. In response, the US and Israel said only that they expect a Palestinian government to meet the international demands. Palestinian officials had tried to put a positive spin on Washington's silence. Abbas also learned earlier this week that Israel had decided on a boycott, said his aides. The message was delivered in a meeting between Palestinian negotiators and aides of Israeli PM Ehud Olmert, the Palestinians said. Speaking to Turkish TV, during a trip to Turkey, Olmert said, "I am not certain the full scope of this agreement is clear to anyone. The initial signs are not very encouraging". Abbas will meet tomorrow with Welch and with US Secretary of State Condoleezza Rice, in part to try to persuade them to change their position, the Abbas aides said. The meetings will also help prepare for a three-way summit - Rice-Abbas-Olmert - in Jerusalem. The summit was initially billed as a step toward resuming peace talks, frozen for more than six years. Despite the turmoil, Abbas moved ahead with the formation of the new coalition. He met with Haniyeh, and then the two leaders held a brief ceremony at Abbas' office, announcing the resignation of the Hamas government and the appointment of Haniyeh as head of a caretaker government while the new one is formed. Hamas had threatened to put off the resignation until Abbas met a list of demands, including endorsing the militia and the appointment of dozens of Hamas supporters to key civil service jobs. The two sides decided to put off the dispute. Hamas negotiator Khalil Al-Hayah said, "Nothing will stop the formation of a national unity government. These issues will be dealt with as the government forms".