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Saker Habash, one of Arafat's advisers, issued a statement endorsing the Saudi initiative, clarifying matters by saying: "the right of return is the winning card, which means the destruction of Israel."How can the world deal with the moral issue of the "right of return"?

The expectation is that it will gain full international legitimacy. All this without recognizing Israel or giving up terror. The question remains: How will that come about?

--Iran has been training up to 500 Hamas operatives as combat commanders and soldiers. They said the Hamas fighters would serve as the core of any Hamas-led Palestinian army over the next year --New Group Claims Attacks On Internet Cafes--Iran, Syria Sign Defense Pact

This past week, the Jerusalem Center for Public Affairs issued a report entitled "Iran Is Building 'Hamastan' in Gaza", which documents how Iran is establishing a base in nearby Gaza, based on "a growing strategic alliance between Iran and the radical Palestinian forces... ".

Currently, it has become clear that it is enough for Europe that the Palestinian unity government "reflect" the principles of the international community without explicitly meeting them.

Members of Fatah concede that they made most of the compromises in reaching the Accord; according to one Hamas leader, "Fatah made 90 percent of the concessions, while Hamas made only 10 percent."

"The Syrians have been very cautious and acted very quietly, but there is a new situation along their southern border," an official said.