JERUSALEM, March 7 -- Palestinian Authority Prime Minister Salam Fayyad, respected by Western and Israeli officials for his oversight of security and aid programs in the West Bank, said Saturday that he would resign by the end of March in the hope of furthering reconciliation talks between Palestinian factions.

Talks aimed at creating a unified Palestinian government are underway in Cairo between the rivals, the Islamist Hamas movement and the Fatah-led Palestinian Authority, which since a violent 2007 clash have divided control of Palestinian society. Hamas is in charge of the Gaza Strip, and Fatah is in charge of the West Bank.

In announcing that he would step down along with the other members of his cabinet, Fayyad said he wanted to move aside in deference to a "national consensus government" that could soon take over and pave the way for overdue presidential and legislative elections early next year.

According to a release from the Palestine News Agency, Fayyad said his resignation would take effect "immediately upon formation" of a unity government but would occur no later than the end of March -- the tentative deadline for a series of negotiating committees established between the two sides.

The Obama administration hopes to restore progress toward a resolution of the Middle East conflict -- U.S. diplomats held talks with the Syrian government Saturday in Damascus as part of one new initiative -- but the cleavage in Palestinian society is considered a significant barrier.

Fayyad, a political independent with a technocratic background, has been in the middle of that partisan divide. Hamas has criticized his involvement in a government the group considers illegitimate, while some Fatah members have been upset that party loyalists were not awarded with more top government jobs.

A spokesman for Hamas, which opposes Israel's existence and is engaged in a simmering military conflict with it, said Fayyad's eventual departure was "expected" because his government was "illegal and unconstitutional," the Associated Press reported.

But Fayyad has also been central to efforts to bolster Palestinian Authority President Mahmoud Abbas and Palestinian moderates who favor a two-state solution with Israel.

Western and particularly U.S. officials trust him and have increased aid to the West Bank with confidence in Fayyad's ability to administer it. He is also the main Palestinian contact in U.S. programs to improve Palestinian security forces. His resignation could thus affect a broad set of issues.

Yuval Steinitz, a member of the Israeli Knesset and possible cabinet member in the incoming government to be headed by Likud party leader Binyamin Netanyahu, said Fayyad's potential departure "is not good news," particularly if a new Palestinian government leaves Hamas in a stronger position.

Others suggested that it is far from certain whether Fayyad will actually leave, indicating that the resignation might be more a gesture than a certainty. Indeed, its announcement coincided with a statement from Abbas asking him to remain in the job until the unity discussions are completed.

Husam Kader, a Palestinian politician and Fatah member, said Fayyad's importance is such that he might be "resigning" with the expectation that his critics, as well as his supporters, will ask him to continue.

"Maybe this is a message for those meeting in Cairo," Kader said. "It is really him saying, 'I am a main player.' "

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/07/AR2009030700562_pf.html

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