A new public opinion poll published on Saturday showed the ruling Fatah party and Hamas running a close race ahead of parliamentary elections slated for January 25.

Security sources in the American government warned that the US will cut funding to the Palestinian Authority if Hamas representatives would be elected to official positions in the new government that was expected to form.

According to Israel Radio, the warning came following a meeting between PA Chairman Mahmoud Abbas and US representatives David Welch and Elliot Abrams...

Meanwhile, Hamas leader Mahmoud Zahar announced that his movement would not abandon the armed struggle against Israel or negotiate with any Israeli after, when and if, it wins the elections. He disclosed that a Hamas-controlled cabinet would incorporate Palestinian Authority policemen into armed groups that are fighting against Israel.

Addressing a Hamas rally in the southern city of Khan Yunis in the Gaza Strip, Zahar reiterated his movement's opposition to any form of economic and security cooperation with Israel.

"To all those who claim that Hamas has abandoned the resistance option because of its participation in the election, we say that we remain committed to the resistance," he declared.

"Israel is an enemy, not a partner or a friend or a neighbor. We won't negotiate with them and this is our final position. Palestine, all of Palestine, belongs to the Muslims and the Arabs and no one has the right to give up one inch of its land."

Fathi Hamad, a Hamas candidate from the Gaza Strip, said his movement would continue to develop its armed wing, Izzaddin al-Kassam, by recruiting more members and manufacturing more rockets and bombs.

The fiery statements of the Hamas leaders come against a backdrop of reports suggesting that Hamas's victory in the parliamentary elections could have a moderating effect on the movement.