The chairman of the Palestinian Authority, Mahmoud Abbas, is to arrive in Gaza today to meet with PA Prime Minister Ismail Haniyeh for talks over the PA unity government. Sources close to the two leaders said yesterday that the talks were moving ahead. By the weekend Haniyeh may announce his resignation and Abbas would announce the formation of a new cabinet of technocrats led by Mohammed Shabir, the candidate acceptable to both Fatah and Hamas.

However, Palestinian sources said delays might result from disagreements between the two sides or because of a major Israeli action in Gaza following the Qassam attacks. Sources close to Abbas said yesterday that the military wing of Hamas had increased Qassam fire to halt the talks between Haniyeh and Abbas.

The Qassam attacks came yesterday shortly before Abbas met Egyptian President Hosni Mubarak in Cairo for talks on the new Palestinian government. On Tuesday Abbas met with Jordanian King Abdullah and American envoy, Assistant Secretary of State David Welch. Welch also held talks with Arab League chief Amr Moussa before he joined the Quartet meeting, being held at the Russian Embassy.

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Later in the day, representatives of the Quartet - the U.S., European Union, Russia and United Nations - met in Cairo to discuss how to relaunch the peace process long stalled by Israeli-Palestinian fighting.

It was the first gathering of the Quartet since the Palestinian militant group Hamas formed its government following its landslide victory in the January legislative elections, throwing the peace process into crisis.

The United Nations envoy to the Middle East, Alvaro De Soto, told Haaretz the Quartet maintained its September 20 position supporting the establishment of a PA unity government, in the hope that it would reflect the Quartet's principles: recognition of Israel and of previously signed agreements with it, and a renunciation of violence. De Soto said he was "encouraged" by the progress toward a new Palestinian government.

Meanwhile, a European diplomat revealed that there had been disagreement between the U.S. and the other members of the Quartet over the PA unity government. The U.S. is promoting a position that there will only be cooperation with the new government if it meets the conditions, while the diplomat said the principles are not pre-conditions as far as Russia and some of the European Union countries were concerned.

A Hamas spokesman in Gaza, Ismail Radwan, said Tuesday that Abbas has given the group guarantees that Arab countries and other members of the international community would end the economic boycott of the PA once a new government is formed, even if it still refuses to recognize Israel.

Radwan added he has no fear of the boycott not being lifted, since "the American government is in a deep domestic and foreign crisis.

"The new government has not been asked to recognize the Zionist enemy," Radwan told Haaretz Tuesday.

In response to these statements, senior officials of Abbas' Fatah movement said they fear the Hamas leadership in Damascus was again trying to torpedo the emerging agreement on a unity government. "Every time we are on the verge of an agreement, a group in Hamas arises and tries to undermine the agreements," complained Maher Makdad, Fatah's spokesman in Gaza. "It's very possible that Abu Marzouk's statements were aimed at foiling the establishment of a unity government." Khaled Meshal, who heads Hamas' political bureau, has actually approved many elements of a deal, an Abbas associate said. "We agreed that the division of portfolios among Fatah and Hamas would be nine for Hamas, six for Fatah and nine for ministers with no party affiliation or members of the small organizations," he said. "Meshal also agreed to accept the principles of Abu Mazen's letter of appointment. But now, it seems that Abu Marzouk is trying to undermine the agreements with Meshal. He has joined with Prime Minister [Ismail] Haniyeh, who is insisting on retaining his position, and the 'Gaza group' [Abu Marzouk, Haniyeh and Interior Minister Saeed Seyam] is not interested in giving up their membership in the government." Abbas yesterday called on Israel to renew talks on a final settlement with the Palestinians. He said that as part of such a settlement, Israel would have to withdraw from the entire West Bank, the Gaza Strip and East Jerusalem. In a pre-recorded speech, Abbas called on Israel "not to waste the chance for peace."