Hamas has implicitly recognized Israel’s right to exist. The group agreed with rival party Fatah on a plan supporting a two-state solution. The document affirms that the Palestinians aim to establish a state on the territories they occupied in 1967. It promises that resistance will be limited to those territories, and that political negotiations will also be explored. Hamas’ 1988 charter called for the complete destruction of Israel and ruled out all negotiations with the country. A formal signing ceremony between Hamas and Fatah will be held later today.

Hamas’ change in outlook comes as Israel gathers forces on the border of the Gaza Strip. Israeli Prime Minister Ehud Omert is preparing a rescue mission for a 19-year-old soldier captured by Palestinian gunmen Sunday morning. Secretary of State Condoleezza Rice has urged Omert to give diplomacy another chance before launching an attack.

Rice made her statement while en route to Pakistan, where she will ask President Prevez Musharraf to increase cooperation with Afghanistan in combating terrorism. Two British soldiers were killed in Afghanistan today.

Rice and Musharraf are also expected to discuss Iran, whose leader today rejected any talks with the U.S. "Negotiations with the United States would have no benefit for us, and we do not need them," Ayatollah Ali Khamenei told the president of Senegal.

The Supreme Court struck down Vermont’s campaign finance limitations, making it harder for states to control the flow of money into politics. The court reconfirmed that government has the power to restrict campaign contributions, but Vermont’s spending caps were too low. Vermont’s law was the strictest in the country, including a $200 limit on contributions to statewide races.