Fatah faces US cut off if it joins Hamas govt

The warning came as senior Fatah officials held talks in Gaza with Hamas over whether to join the government being formed by the Islamic militant group, which beat Fatah in January elections.

Fatah has so far said it has no intention of joining the government unless Hamas, whose charter calls for Israel's destruction, changes its political program, but talks continue.

The US administration is trying to isolate the Islamic militant group following its Jan 25 election victory, hoping to pressure Hamas to renounce violence, abide by interim peace deals and recognise Israel.

Washington is concerned that by bringing in members of a faction publicly committed to a negotiated peace with Israel, Hamas could soften its international image.

In recent meetings, US officials told Abbas and other senior Fatah members that Washington opposed the faction joining the new Hamas government, Palestinian officials said.

"Hamas can't whitewash its cabinet" by bringing in Fatah and other factions, said a diplomatic source.

The United States has kept alive the possibility of renewing peace efforts through direct talks with Abbas and other Fatah leaders.

But diplomatic sources said those contacts would be curtailed if Fatah joined the government led by Hamas.

Bush administration officials are barred from having direct contacts with members of Hamas, and U.S. law prohibits the United States from providing any support to the group, classified as a terrorist organization by the State Department.