Mr Abbas says talks for a national unity government have failed. [File photo]
Last Update: Wednesday, October 4, 2006. 11:07pm (AEST)

Abbas hints at dissolving Government

Palestinian President Mahmoud Abbas says he might opt to dissolve the Hamas-led Government after unity talks with the Islamist group broke down.

Mr Abbas has made the announcement hours before a scheduled meeting with visiting US Secretary of State Condoleezza Rice.

"My constitutional powers, granted by the basic law, will be used in [the appropriate] time," he said.

"The dialogue now does not exist."

Some officials from Mr Abbas's Fatah faction have urged him to dissolve the Government and form a new administration, a move that could lead to civil war.

"It is very necessary that we increase our efforts to end this crisis and reach a solution towards forming a new government," Mr Abbas said.

"I hope to reach this end as soon as possible because the people have been suffering for the past seven months and cannot endure further suffering."

Israel and western donor nations cut off funds to the Palestinian Authority, deepening economic hardship in the West Bank and Gaza, after Hamas established a government in March, following their January election win.

Hamas has rejected international demands to renounce violence and recognise Israel and existing interim peace deals.

Dr Rice is on a regional visit partly aimed at bolstering the moderate Mr Abbas in his power struggle with Hamas, which is dedicated to Israel's destruction.

- Reuters