US, Israel talk of Hamas ouster

The hope is that Palestinians will be so unhappy with life under Hamas that they will return to office a reformed and chastened Fatah movement.

The officials on condition of anonymity, said this approach was being discussed between the State Department and the Israeli government.

Hamas, they said, will be given a choice: recognise Israel8217;s right to exist, forswear violence and accept previous Palestinian-Israeli agreements8212;as called for by the UN and the West8212;or face isolation and collapse.

The destabilisation plan centers on money. The Palestinian Authority has a monthly cash deficit of some 60 million to 70 million after it receives between 50 million and 55 million a month from Israel in taxes and customs duties.

If a Hamas government is unable to pay its employees 140,000 people one-third of the population import goods, transfer money or receive outside aid, Abbas would have the authority to dissolve parliament and call new elections.

On Sunday, PM Ehud Olmert announced that Israel would consider Hamas to be in power on the day the new parliament is sworn in: this Saturday. 8212;NYT