The Palestinian mainstream faction of Fatah announced on Wednesday that it has agreed "in principle" to join the new government led by the Islamic Resistance Movement (Hamas), while Egypt called on the United States again to give Hamas "a chance."

Azzam el-Ahmed, head of the Fatah movement in the Palestinian Legislative Council (PLC), made the announcement at a joint news conference with the Hamas parliamentary Mahmoud al-Zahar at the latter's residence in Gaza City after their meeting.

"The principle of participating in a Palestinian government led by Hamas movement is in principle accepted by Fatah movement, but we should first agree on a joint program of the new government," said al-Ahmed.

He told reporters that there are no differences between the two movements at present, but he did not rule out the possibility of divergence in the future as the two movements have "different understandings on the mechanism of the new government's action".

"If we overcome these differences, we might then be able to reach together to our joint major goals," al-Ahmed said, referring to Fatah's political program that recognizes signed agreements with Israel.

In Cairo, Egyptian President Hosni Mubarak told visiting US Secretary of State Condoleezza Rice that Hamas should be given "a chance."

"Hamas should be given a chance to assess the current situation and make clear its stances," Mubarak was quoted as saying during a meeting with Rice by presidential spokesman Soliman Awad.

Mubarak also asked Washington to maintain support for Palestinian President Mahmoud Abbas and the Palestinian National Authority (PNA) even if a Hamas-led government took office, according to the spokesman.

Egypt, a key US ally in the Middle East, has repeatedly called for patience to give Hamas more time to transform from a militant group to a major player in Palestinian politics.

Earlier, Egyptian Foreign Minister Ahmed Aboul Gheit also said it would be premature to cut off international aid for the Palestinian government, even if Hamas is at its helm.

Also on Wednesday, the United States urged Hamas again to change its course, saying it must make a choice between "a terrorist organization" or a reliable partner for peace.

"I think there is a strong consensus that a Hamas-led (Palestinian) government faces a choice and that choice is either (to) continue as a terrorist organization ... or (to) join with the international community in recognizing Israel, rejecting terror and violence," US State Department deputy spokesman Adam Ereli said at a briefing in Washington.

Ereli urged Hamas to honor commitments that form the basis for a negotiated settlement that meets the aspiration and needs of the Palestinian people.

In Brussels, Arab League Secretary-General Amr Moussa called on Hamas to recognize Israel by backing a 2002 Arab peace formula calling for independent Israeli and Palestinian states.

"The Arab initiative is the proper door for Hamas to recognize the peace process in general with all its tenets," Moussa told a European Parliament hearing. "This is the recognition that is needed -- recognition by both parties of the two states."

Meanwhile, Iran pledged to provide financial assistance to the cash-strapped PNA following threats by Western nations to halt aid to a Hamas-controlled government.

"We will definitely provide financial aid to this government so that they can stand up against the oppression of America," Ali Larijani, secretary of Iran's Supreme National Security Council, said after a meeting with Hamas leader Khaled Meshaal, who is touring regional countries in search of financial support.

"We hope that the new Palestinian government overcomes its current problems with the help of Islamic countries, including Iran," Larijani said.

The United States and Israel are concerned that Iran, which also refuses to recognize Israel, will gain influence over a Hamas-led government, hampering efforts to reach a Middle East peace settlement.

(Xinhua News Agency February 23, 2006)