JIM LEHRER: Good evening. I`m Jim Lehrer.  In the NewsHour tonight: the news of this Wednesday; then, the latest on the fighting between rival Palestinian forces in Gaza...

JIM LEHRER: The fighting in Gaza, we start with some background narrated by NewsHour correspondent Kwame Holman.

KWAME HOLMAN: The sounds of small-arms fire often clashed with the Muslim call to prayer, as violence intensified across the Gaza Strip today. Groups of gunmen loyal to two rival factions engaged in open battles across the 130-square-mile stretch of coastal land that is home to more than a million Palestinians...

The conflict between Fatah and Hamas has paralyzed the already-fragile Palestinian national unity government. Fatah, the nationalist, largely secular party, led by President Mahmoud Abbas, appeared to be losing significant ground in northern Gaza to the Islamist movement Hamas, which won control of the Palestinian Legislative Council in elections in January 2006...

KWAME HOLMAN: Since Hamas surged to power in parliamentary elections, there has been tenuous, fitful cooperation between the factions, which hold differing visions of a Palestinian state. The U.S., Israel and European Union had cut off funds to the Palestinian Authority and refused to work with the Hamas-led government of Prime Minister Ismail Haniyeh, citing the group`s refusal to recognize Israel and its stated goal of destroying the Jewish state...

KWAME HOLMAN: The U.S., which has funded and assisted in the training of Palestinian security forces, again today pledged its support for President Abbas.

JIM LEHRER: Some analysis of this now from Ghaith al-Omari, a former adviser to Palestinian President Mahmoud Abbas. He`s now a visiting fellow at the New America Foundation, a Washington think-tank...

Gentlemen, first, reports this evening of a truce, and then there were reports, "Oh, no, no, that was not true." Can you update us? Have you heard anything about a truce?

GHAITH AL-OMARI, New America Foundation: Yes, I mean, there has been an offer by Hamas for a truce, a conditional offer. Basically, what happened, Hamas -- or what happened is that the violent aspect of this confrontation seems to be decided in Hamas` favor. Now it moves to the political side...

JIM LEHRER: Now, wait a minute. Let`s just stick to truce. Was the truce accepted or is it...

GHAITH AL-OMARI: Not yet. The conditions of the truce, if I may -- the conditions of the truce are being discussed right now. The conditions include Hamas` take over of the security sector, security system, and the removal of the Fatah leaders of the security organization. This is being discussed tonight within Abbas` government...

JIM LEHRER: Do you agree, first of all, that it may be accepted?

GHAITH AL-OMARI: It could be accepted, yes.

JIM LEHRER: Do you agree that it would mean accepting a Hamas victory over Fatah in Gaza?

GHAITH AL-OMARI: I don`t think this is the case; it`s not that simple. I think what`s happening right now is that we`re moving into the political phase following the military confrontations. I agree with Mark that the Hamas almost certainly won in Gaza. Right now...

JIM LEHRER: Well, both of you, beginning with you, Mr. al-Omari, help people who don`t follow this that closely understand why Hamas and Fatah are killing each other. What`s not the long history, but just what`s caused this conflict?

GHAITH AL-OMARI: It`s basically a power struggle. Hamas came into power. They won in the election back two years ago. They won an election. They wanted -- after winning the election, they felt that they were entitled to control the whole Palestinian political and security system. Fatah, which has been in power for the last 40 years, felt that they could not relinquish power completely to Hamas and, from that moment on, there was a power struggle...

For the complete transcript, please visit The NewsHour with Jim Lehrer website.