Mr. Fayyad is floating the proposal, first reported by Ha'aretz, just as Israel is announcing a crackdown on Islamic charities that it says are used to finance the Hamas government in Gaza. Israel has long opposed any reconciliation with Hamas, which does not recognize the Jewish state's right to exist. The prime minister reportedly has already sounded out the idea, aimed at bringing Hamas's armed soldiers in Gaza under the umbrella of the Palestinian Authority, with Arab and Western diplomats. Mr. Fayyad — a pro-Western former official at the World Bank who was appointed prime minister last year as a compromise candidate belonging neither to Hamas nor to Fatah, which controls the West Bank — says his aim is to reunite Gaza and the West Bank under one government. Shortly after a bid to unite the two factions in 2007, Hamas, a...
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