Palestinian Authority Prime Minister Ismail Haniyeh reiterated his opposition to recognizing Israel's right to exist and halting terrorism on Wednesday, but the comments were not enough to deter Prime Minister Ehud Olmert from his intention to meet in the near future with PA Chairman Mahmoud Abbas.

As Abbas was meeting with US President George W. Bush in New York on Wednesday, Haniyeh addressed supporters in Gaza City, saying the Hamas-led government would not accept the conditions set by America and the rest of the Quartet for resuming financial aid to the Palestinians.

"They are imposing unacceptable conditions on our people," Haniyeh said in statements that were seen as a warning to Abbas not to succumb to US pressure.

"They want us to condemn the heroic resistance and recognize the agreements [signed between Israel and the PLO]. But we will continue to abide by the national reconciliation document [drafted by Palestinian prisoners held in Israeli jails], which does not recognize the legitimacy of the occupation."

Haniyeh added that the document, which he believes should serve as the political program for a future unity government, clearly states that the Palestinians have the right to continue the "resistance" against Israel...

...For Palestinian politics, Haniyeh's remarks are yet another indication of the deepening crisis between Abbas and Hamas over the formation of a unity government. Moreover, his remarks contradict statements by Abbas aides to the effect that a unity government would recognize Israel and honor all agreements with Israel...