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The BBC interviewed an aide to Abbas who said the deal would go something like this:

The Hamas members of a "unity government" would pledge to recognize Israel, renounce violence etc.

But this would not require Hamas as an organization to change its positions on Israel.

What a joke?

Unfortunately I get the impression this deal is something being done with the involvement of the EU and the United States who are pushing the idea to bring some sort of "stability" to Palestinian territory.

They are trying to get around the financial embargo that is hurting the Palestinian government which has no money now.
Hamas being the government caused the financial cutoff.

They (United States-EU) are also trying to move back towards a "peace process."

So much for being tough on terrorism. Condi Rice is trying to find a way out of punishing Hamas (terrorists) for being the Palestinian government by fig leafing it with Fatah (Abbas' people) and creating this "I'm in the government and recognize Israel" thing for the Hamas people in it.

And meanwhile every day the Quassams (rockets) get shot off every day at Israel from Gaza. Minor damage and injuries mostly but one day something bad is liable to happen. So much for the "peace process."

A "unity government" as envisioned here won't stop the rockets or other terrorist attacks to come.

I've heard stories of a rocket buildup in Gaza but we shall see if the Lebanon scenario gets repeated there again in the months ahead.