CAIRO, May 4: Rival Palestinian factions Fatah and Hamas on Wednesday proclaimed a landmark reconciliation pact aimed at ending their four-year rift that has left them divided between separate governments in the territories envisioned for a future Palestinian state.

The alliance set off ecstatic celebrations in the Palestinian territories.

But Israel’s leader called the presence of Hamas in the government a “big prize for terrorism”.

Palestinian President Mahmoud Abbas brushed off the criticism and instead used the occasion to deliver a scathing attack on Israel. “We forever turn the black page of division,” Mr Abbas told the declaration ceremony in the Egyptian capital, Cairo. He promised to “soon” visit the Gaza Strip.

Reconciliation is essential for Palestinians to establish a state in the Israeli-occupied Palestine.

Wednesday’s pact provides for the creation of a joint caretaker government ahead of national elections next year. But it leaves key issues unresolved, such as who will lead the government or control the competing Palestinian security forces.

It also makes no mention of relations with Israel. Mr Abbas favours a negotiated peace with Israel, while Hamas refuses to accept Israel’s existence.

In a potential sign of trouble, pro-Israel Tony Blair said the world would demand the new government renounce violence and recognise Israel’s right to exist.

“If the principles are not upheld, it puts us in a very difficult position,” he said. “I think the central question people ask is, ‘Does this mean a change of heart on behalf of Hamas or not?’ ... We want them in this process. Otherwise there will be no peace.”

Mr Blair represents the so-called quartet of Mideast mediators — the US, European Union, United Nations and Russia.—AP