"Both Fatah and Egypt still insist that Hamas has to sign the Egypt-brokered pact first before discussing any amendments, but Hamas insists that amendments come first," Gad said.
Egyptian Foreign Minister Abul Gheit said Saturday following the meeting between Mubarak and Mitchell that his country has no intention to amend the Palestinian national reconciliation document it brokered.
"Amendments to the reconciliation paper are totally unacceptable regardless of what they are," Abul Gheit said, urging Hamas to sign the document, which was already signed by Fatah unilaterally.
"And then they (Hamas) could debate directly any reservations they have with the Palestinian National Authority," the minister said.
Meanwhile, Chief Palestinian negotiator Saeb Erekat denied reports that Palestinian President Mahmoud Abbas had accepted another reconciliation plan proposed by Hamas.
However, Gad dismissed the idea that the failure of the inter- Palestinian reconciliation would have negative impact on the progress of proximity talks between Israel and the Palestinians.
"Israel does not wait for achieving Palestinian reconciliation. It employed this division in the past to postpone negotiations on the final status. Now every thing is stable and Hamas poses no danger to Israel," he said, describing the Israeli-Palestinian proximity talks as a success.
"As long as the proximity talks do not stop, this means that it proves success in overcoming a crucial stage marked by tension," he said referring to the resumption of talks despite Israeli attack on the Gaza-bound Freedom Flotilla.
The Egyptian expert expected Israel to respond to some of the requests made by the Palestinians, especially regarding the security issues and allowing aid to Gaza, due to U.S. pressure.
The Palestinian leadership wants a complete Israeli withdrawal from all the occupied territories, and they demand Israel to completely halt all settlement activities in the West Bank and East Jerusalem and resume the talks on final-status issues that end with the establishment of an independent Palestinian state.
Yasser Abed Rabbo, a Palestine Liberation Organization (PLO) official, said on Friday that Abbas is waiting for the Israeli answers to the Palestinian "ideas related to security and borders" carried by Mitchell.