Reporting from Ramallah, West Bank — With reconciliation talks between leading Palestinian movements Fatah and Hamas apparently at another impasse, hopes of an accord are fading fast.

In the wake of a violent split in June 2007, when a coalition government collapsed, the more moderate Fatah has been in control of the West Bank and the militant Islamist Hamas has run the Gaza Strip, in effect dividing the Palestinian cause.

Munib Masri, a Palestinian businessman and head of the Reconciliation Committee, an advocacy group that is trying to push the parties back together, explained why he's still optimistic, even when others say it's time to start viewing the Palestinian fracture as permanent.

The Fatah-Hamas division has been going for more than three years and each side has built strong power bases in the areas it controls. Do you see any chance either would be willing to concede power in order to reach reconciliation?

Yes I do, because reconciliation is a national request and need. Fatah and Hamas said they are willing to reach reconciliation. I think we are closer to reconciliation today than we were five or six months ago....

Hamas should be able to participate in a government in the West Bank, just as Fatah should be in the government and participate in Gaza.

We hope to have a national unity government or a government of independents and professionals to execute the terms of the reconciliation agreement that will be reached, particularly on the security [issues]. But we must have popular pressure to force the two to agree.

If dialogue doesn't bring about reconciliation, what are the chances that either side will try to defeat the other militarily?

It is not feasible to even think of a military solution. First, people are tired, and, second, do not forget that there is still Israeli occupation in the West Bank. Hamas cannot do in the West Bank what it did in Gaza. This cannot happen. And even Fatah will not try to use military force to retake Gaza. This is out of the question. Hamas is in full control of the Gaza Strip and it will be very difficult for Fatah to wage a war against it. There is no chance that there will be a military attempt to end the division.

What are the chances that the split will be permanent and we will have two Palestinian states? Should we just give up on reconciliation talks?

A permanent split is as remote as the military option. It is very difficult to keep the status quo. People like me will not allow it. It will be over my dead body.

Could the Fatah-led Palestinian Authority agree to a peace deal with Israel that didn't include Hamas support?

It will be very difficult. It will be almost impossible. Anyhow, I think Israeli actions will not make it possible to reach a peace agreement. Israel wants to have its cake and eat it too. It is not ready to give anything.

If elections are held today, which side has the better chance of winning?

It depends. If it is left for only Fatah and Hamas, I think the results will be very close. But we need other people to come in, independents and other factions, to do something in the elections. I think Hamas may not do well in Gaza, but it can win more in the West Bank, and Fatah may not do well in the West Bank but it may win in Gaza.

Some have blamed the U.S. for interfering in the reconciliation talks, effectively adding last-minute conditions that caused the 2009 talks to break down in Cairo. Is that accurate?

Unfortunately, the Americans and Israelis are on the same side. I do not know why they do not want reconciliation, because without reconciliation we will never have a two-state solution.