World

Hamas' Haniyeh To Be Prime Minister

February 21, 2006 / 1:15 PM EST / CBS/AP

Palestinian President Mahmoud Abbas appointed Hamas leader Ismail Haniyeh as the next prime minister, the Palestinian news agency said Tuesday.

The news agency released a picture of Abbas handing Haniyeh the official letter of appointment at the beginning of their meeting earlier in the day. Haniyeh, who will be the first Hamas premier, has five weeks to form a government.

The Islamic militant group also reached out to other factions, including the ruling Fatah party, to join a broad-based Cabinet that might stand a chance of gaining international approval.

Also Tuesday, Israeli acting Prime Minister Ehud Olmert said "hope has not disappeared" that Israel can reach a peace agreement with the Palestinians, even as it presses on with its campaign to isolate the incoming Hamas-led government.

In other developments:

Now that Israel and the U.S. have cut off money to the Palestinians, Hamas is seeking financial aid from Iran, reports CBS News correspondent Robert Berger (audio). During a visit Monday by political leader Khaled Mashaal, Iran said it would support a radical Islamic regime in the heart of the Mideast, although it stopped short of a firm commitment of money.

For a second day, Israeli forces were searching in the West Bank town of Nablus for Palestinian militants and weapons. A bomb factory was discovered with 150 pounds of explosives, reports Berger.

Israel's state comptroller is looking into the sale of Olmert's Jerusalem house to a U.S. political activist, Olmert said Tuesday, hinting at a possible scandal that might affect Israel's March 28 election. The Haaretz daily said Olmert sold the home in 2004 for $2.7 million to an offshore company controlled by U.S. tycoon David Abrams, while Olmert continues to live in the house — paying rent at about half the going rate, the paper said.

Despite trying to capitalize on Israelis' fear of Hamas, Benjamin Netanyahu's Likud Party continues to run third in the polls, behind Olmert's centrist Kadima Party and the center-left Labor Party. Many Israelis feel that Likud's insistence that Israel should hang on to all of the West Bank and prevent Palestinian statehood is a recipe for prolonged strife.

Hamas, which trounced Abbas' Fatah movement in legislative elections last month, already has held talks with several small factions since the new Hamas-dominated parliament took office Saturday. It hopes to meet with Fatah soon.

Although Hamas has a solid majority in parliament, it hopes to form a broad-based coalition, in part to help soften its harsh image in the world's eyes. Haniyeh, a former university administrator from the Gaza Strip, is considered a pragmatist who has a good working relationship with Fatah.

Hamas' rise to power has badly damaged chances of renewing long-stalled peace negotiations. Israel refuses to deal with the group, which is responsible for dozens of suicide bombings in Israel, until it renounces violence and recognizes the Jewish state.

Speaking to Israel TV, Olmert said Tuesday that the chances of a "quick agreement" with the Palestinians are smaller now that Hamas is in charge.

"But the hope has not disappeared, and I am responsible for both things, the battle against Hamas and maintaining hope, the chance to reach an agreement," Olmert said.

It is unclear how Israel could carry out peace talks with Hamas in government. Abbas, a moderate who was elected separate last year, has suggested that he could personally handle peace negotiations, while letting Hamas focus on its domestic agenda of improving social services and rooting out government corruption.

Israeli officials say they will not deal with a "two-headed government" that includes a party committed to the country's destruction. After Hamas took over parliament, Israel froze the transfer of roughly $50 million in tax funds to the cash-starved Palestinian Authority each month.

Israel also has urged the international community to join it in isolating Hamas. The United States and European Union, which consider Hamas a terrorist group, have threatened to halt hundreds of millions of dollars of vital foreign aid once the new Palestinian Cabinet takes office.

Hamas so far has resisted the calls to moderate, and said it would make up the lost funds with new donations from Arab and Muslim nations.

That effort suffered a setback after Arab League foreign ministers meeting in Algeria failed to agree on new aid for the Palestinians. For years, Arab countries have pledged hundreds of millions of dollars to the Palestinians, but largely failed to deliver the money.

Even Iran appeared noncommittal. Hosting Mashaal, Iranian leaders called on Muslim nations around the world to make up the Palestinians budget shortfall but gave no firm offers of assistance.

"Since the divine treasures are infinite, you should not be concerned about economic issues," the official Islamic Republic News Agency quoted Iranian President Mahmoud Ahmadinejad Ahmadinejad as telling Mashaal on Monday. "If you work for God, he will provide for you."

The army has been hunting for militants in the camp for three days. Palestinians said they were running out of food and water, and the army allowed five Hamas lawmakers to bring supplies to residents. The lawmakers said they did not disclose their Hamas affiliation to the soldiers.

Also Tuesday, the Israeli army said it removed three small West Bank outposts near the Palestinian city of Ramallah. No violence was reported. Earlier this month, some 200 people were injured when Israeli forces clashed with settlers during the evacuation of part of the Amona outpost.

Under the U.S.-backed "road map" peace plan, Israel has pledged to remove about two dozen unauthorized West Bank outposts, but has yet to fulfill its commitment.