New Palestinian Prime Minister Ismail Haniyeh, of the Islamic group Hamas, conducts his first cabinet meeting in Gaza City, Wednesday, April 5, 2006. The Palestinian Authority's coffers are empty and the new government is struggling to find money to pay tens of thousands of its employees, Haniyeh told his Hamas-led Cabinet at its first meeting Wednesday. (AP Photo/Khalil Hamra)
Palestinian Foreign Minister Mahmoud al-Zahar attends a session of the Palestinian parliament in Gaza, March 28, 2006. Zahar on Wednesday denied referring to a two-state solution to the Middle East conflict, wording that might have hinted Hamas was recognizing Israel's right to exist. REUTERS/Suhaib Salem