Egypt is "rethinking" its strategy in dealing with Palestinian developments, reports Dina Ezzat There is growing awareness in official Egyptian quarters that a fresh approach to Palestinian developments is needed -- one taking stock of past failures that contributed to last month's showdown between Fatah and Hamas in Gaza. Officials say they are contemplating how to readdress both internecine Palestinian conflict and the Palestinian-Israeli equation. No decision has been taken yet on the new "Egyptian strategy". "We are still assessing the facts on the grounds, not only in terms of the Palestinian situation but in terms of the situation in Israel and the level of engagement -- serious engagement -- that the US is prepared to invest," said one senior Egyptian official speaking on condition of anonymity. Two elements, however, will be included in any new strategy. The first is a shift from involvement in setting details on the ground to attention to the bigger picture, both on the inter- Palestinian and Palestinian-Israeli fronts. The second element is to be more inclusive in whom to engage. "Let me be clear. This does not mean that we are going to overlook developments on the ground, especially when it comes to Gaza, or that we are going to part ways from our support to President [Mahmoud] Abbas as the representative of Palestinian legitimacy as we acknowledge it," the source said. In working out the details of this new strategy, General Intelligence Chief Omar Suleiman this week met Palestinian delegations from Hamas and Fatah. Suleiman and presidential adviser Osama El-Baz also met an Israeli delegation headed by Meretz Knesset member Yossi Beilin. Meanwhile, Foreign Minister Ahmed Abul-Gheit was in Washington for talks with top US officials, including Vice-President Dick Cheney and US Secretary of State Condoleezza Rice. Accompanied by his Jordanian counterpart, Abul-Gheit is also planning a visit to Israel later in the month -- possibly on 25 July -- for talks with officials and Knesset members on the prospect of resuming meaningful Palestinian-Israeli peace talks. Sources say that during his talks in Washington, Abul- Gheit managed to secure Rice's promise to invest more political capital in Palestinian-Israeli talks. Sources add, however, that Abul-Gheit is not overly hopeful that the promise will be met, especially that time is running out for the current US administration. Meanwhile, one senior Egyptian official told Al-Ahram Weekly that Cairo has discretely but clearly blamed the US for the current deterioration. "The Americans were told that if the Palestinian Authority had made progress in offering its people a better quality of life, or in securing development on the political front, then the showdown between Hamas and Fatah would not have occurred," he said. Regarding the peace process, "there needs to be a political framework; there needs to be political negotiations for a final settlement, even if this settlement is not immediately implemented," said Ezzedine Choukri, peace process and regional security adviser at the Egyptian Foreign Ministry. Egypt also wants the Israeli government to acknowledge the frustration the Palestinians suffer as a result of the extended closures. As such, Egypt wants Israeli security measures to be sensitive to the Palestinians' need for freedom of movement and their want to revive their much suffocated economy. During talks with Beilin, El-Baz stressed that the failure of "moderate" Israeli political quarters to influence decision- making in the Israeli government has contributed to the present deadlock. El-Baz and Suleiman, sources suggest, blamed Israel for the collapse of the prisoners swap deal that Egypt for a year worked on to secure the release of captured Israeli soldier Gilad Shalit in return for a few hundred Palestinian prisoners. Egypt also wants a change in attitude from the Palestinians. "And we are not only talking about Hamas, but indeed about Fatah," said one senior Egyptian official. According to this official, Egypt has used "very firm and clear language at a very high level" to protest against the failure of Fatah to commit to the concerns and demands of the Palestinian people as opposed to engaging in squabbles over power. Egypt, informed sources say, is trying -- though not hopeful about succeeding -- to get Israel to consider releasing charismatic Fatah leader Marwan Barghouti to give credibility to Fatah. Egypt also wants Abbas to lower the intensity of the rhetoric he is using in attacking Hamas. "We appreciate his views, but we think it would be useful if both Fatah and Hamas leaders refrain from engaging in public criticism," said one Egyptian official. He added that this is a precondition for Egyptian plans to host Fatah-Hamas talks towards the end of July. Regarding Hamas, Egypt wants the movement to be more flexible, including relinquishing ministerial posts to give a technocrat-composed Palestinian government free access to international aid as well as a free hand in negotiating a final settlement with Israel. Egyptian officials acknowledge that while it is unlikely that Hamas will give up control of Gaza "any time soon", it is likely that Hamas will be pragmatic, especially if Cairo delivers on Hamas's demand that the Rafah crossing that links Gaza to the outside world is reopened and the plight of thousands of Palestinians stranded in Egypt is addressed. (see pp.2&6)