Senior leader of Hamas says law won't allow referendum

A drop in international aid has left the government unable to pay salaries.
LOS ANGELES TIMES
JERUSALEM -- Hamas declared Sunday that Palestinian Authority President Mahmoud Abbas does not have the legal authority to call a territory-wide referendum on recognizing Israel.
The statement by Palestinian Prime Minister Ismail Haniyeh, a senior leader of Hamas, appeared to again set the militant group on a collision course with the moderate Abbas.
Abbas has given Hamas a deadline of Tuesday to either agree on a common political platform, including recognition of the Jewish state, or put the question to the Palestinian electorate.
Haniyeh, speaking to reporters in Gaza, said, "Referendums are not permitted in the Palestinian lands."
To make his point, he cited Palestinian law and unspecified experts in international law.
Palestinians have never before held a referendum, but Abbas said one could be staged if he issues a presidential order decreeing it.
There were indications that Abbas might extend the Tuesday deadline to allow the two sides more time to talk. He said in May that unless an agreement could be reached, he would draw up plans to hold a referendum in 40 days.
Here's the problem
Hamas' refusal to recognize Israel and renounce violence have resulted in a dramatic drop in international aid which, in turn, has left the Palestinian government unable to pay salaries for three months. Some of the lowest-paid government employees, however, were allowed Sunday to draw part of their earnings from a bank in Gaza, and more were expected to receive a partial payment on Monday at other banks.
About 40,000 workers -- fewer than one-third of the total number of civil servants and security forces -- would be eligible to receive a month's payment, government officials announced. Palestinian banks fear running afoul of a U.S. ban on financial dealings with Hamas, so the money paid out to government workers is being described as an interest-free loan.
Meanwhile, Israeli Prime Minister Ehud Olmert told Egyptian President Hosni Mubarak on Sunday he would meet with Abbas, although he did not give a date. Egypt, like the Bush administration, has urged Olmert to bolster Abbas as he faces contentious dealings with Hamas. The Islamist group won parliamentary elections in January, and disputes have been escalating since then between Hamas and Abbas' Fatah faction.
Olmert's meeting with Mubarak, held in the Red Sea resort of Sharm el-Sheik, was his first with an Arab leader since becoming prime minister.
Israel says coming to an agreement with the Hamas-led government is a near-impossibility, but Olmert has said his West Bank pullback plan would only be carried out if the U.S.-backed "road map" peace plan cannot be revived.
"I really hope that our Palestinian partners will take advantage of this opportunity," Olmert said.