Palestinian Authority Chairman Mahmoud Abbas told journalists in Damascus on Monday that while talks with Hamas political leader Khaled Meshal were "fruitful," he did not rule out calling early elections.

"Early elections are an option if a national unity government is not formed," he said, in response to a question, but did not elaborate.

The meeting failed to resolve an increasingly bitter dispute and form a unity government, dashing hopes for a quick end to the political crisis.

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Palestinian Prime Minister Ismail Haniyeh, of Hamas, downplayed the significance of the Abbas-Meshal meeting and said representatives from the two sides would meet Tuesday in Gaza to continue the dialogue.

Officials from both sides said Monday after the late night meeting a day earlier that the main sticking point was the wording of the official document declaring the new government's program.

Abbas wants the document to read that the government will "abide by" Arab League summit resolutions and previous agreements signed between Israel and the Palestinians.

Hamas insists on using the word "respect," which falls short of international and Israeli demands that Hamas uphold all earlier accords.

The deputy head of Hamas' politburo Moussa Abu Marzouk confirmed Monday that the so-called letter of designation that Abbas would give a new prime minister was still a topic of discussion.

"But these are not just words... they have [political] implications," he said.

He accused Fatah of backtracking on formulas already agreed on in the past.

"The other side changed its position. They [Fatah] want to implement only what's convenient for them," he said.

A Hamas spokesman in Gaza, Salah Bardawil, said "abiding by [the demands] means recognizing Israel, and that's a free gift to Israel."

"If the argument is we must deal with the reality before us, we say, let's respect those agreements, and not become completely entangled in the mistakes of the past," he added.

Meanwhile, Fatah spokesman Tawfiq Abu Khoussa said a new administration must adopt policies that would lead the West to lift what he termed its siege of the Palestinians, a reference to a cutoff of aid to the Hamas-led government.

"When two political agendas clash we should go back to the people and they should choose an agenda," he said referring to Abbas' call for early elections.


A joint statement issued by Abbas and Meshal following their meeting Sunday - the first since July 2005 - said the two sides "achieved major progress" and pledged to continue talks on forming a coalition government within the next two weeks.

"There are still points of disagreement, but we will try to resolve them through a national dialogue until we form a national unity government," Meshal said during a press conference with Abbas in the Syrian capital.

The two sides stressed that Palestinian infighting, which has killed at least 35 people in recent months, was unacceptable and pledged to try to avoid political friction that has been sparking the violence.

"Palestinian bloodshed was considered totally prohibited, and we must exert all efforts to avoid friction and internal clashes," Abbas said as he left for the West Bank city of Ramallah.

Both sides also reiterated their rejection of a proposal for a transitional Palestinian state with temporary borders.