Hamas yesterday slammed a multi-million dollar US aid package to bolster security forces loyal to its rival Fatah, as the two Palestinian factions consolidated a two-day-old truce by releasing hostages.

"There is no doubt that this is part of American policy aimed at provoking an escalation and a civil war in the service of a Zionist plan," said Ismail Radwan, a Hamas spokesman.

"Each time the American administration sees that we have arrived, or are on the verge of arriving at an agreement, it sends (US Secretary of State) Condoleezza Rice to poison the atmosphere or announces financial aid (to president Mahmoud Abbas) to maintain tensions among Palestinians," he said.

US President George W Bush has ordered the transfer of about 86 million US dollar in aid to strengthen security forces loyal to the moderate president and Fatah party leader, the White House announced on Tuesday.

The aid is part of a broader US push to revive peace negotiations between Abbas and Israel, with the four Middle East peace sponsors - the European Union, Russia, UN and US - to meet in Washington tomorrow.

US officials said the aid, which includes training, vehicles and uniforms, would theoretically help Abbas counter armed attacks against Israel such as Monday's bombing in the popular Red Sea resort of Eilat.

The aid was declared as a ceasefire went into effect on Tuesday after the deaths of at least 30 Palestinians in the fiercest internal violence since Hamas defeated the long-dominant Fatah faction in an election a year ago.

The truce was largely holding for a second day yesterday, as the groups swapped hostages. A total of 20 Hamas and 18 Fatah hostages had been freed so far, said a senior leader of Fatah's Al Aqsa Martyrs Brigades.

However, hospital officials said Bashir Issa, an Al Aqsa Martyrs Brigades member, was in critical condition after being shot by gunmen who opened fire from a car in Gaza City.

But while a Fatah spokesman said the general atmosphere had improved, he complained that an "executive force" controlled by Hamas was causing "tensions and not helping the restoration of confidence" between the groups.

PHOTO CAPTION

Palestinian leader Mahmud Abbas is seen during a meeting in Cairo, 30 January. (AFP)

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