JERUSALEM, Feb 17: US Secretary of State Condoleezza Rice said on Saturday that this is an ‘important time’ to advance the idea of a Palestinian state alongside Israel, despite what she said were complications created by the emerging Palestinian government.

Ms Rice spoke at the start of a meeting with Israeli Foreign Minister Tzipi Livni, and two days before a three-day summit with the Israeli and Palestinian leaders.

Ms Livni said that a Palestinian power-sharing agreement between President Mahmoud Abbas and the Hamas does `not meet the requirements’ of the international community.

The Quartet of Mideast peacemakers has demanded that any Palestinian government recognise Israel.—AP

Ms Rice said the creation of a unity government in Palestine would make it difficult for Washington to support the Palestinian administration, our Washington Correspondent adds.

Talking to reporters in Washington before her departure for the Middle East, Ms Rice indicated that the Bush administration had strong reservations about Palestinian President Mahmoud Abbas’s planned union with Hamas, which is listed by the United States as a terrorist group.

So far the Bush administration has supported the relatively-moderate Mr. Abbas in his power struggle with the Islamic Hamas movement but the deal can jeopardise this strategy.

Ms Rice would not confirm that US diplomats have warned Mr Abbas that Washington would shun the new government put together in Makkah last week.

"Talking about recognizing or not recognizing the government" is premature, Ms Rice said. "There isn't one yet. When there is one, the United States will make a determination."

She said she has seen no evidence yet that the new government intends to meet international demands to recognize Israel, renounce violence and abide by agreements made by the previous secular Palestinian government.

Ms Rice said the deal has clouded prospects for Congressional approval of a Bush administration plan to aid security forces loyal to Mr Abbas.

Boycott

President George Bush and Israeli Prime Minister Ehud Olmert have agreed to shun a Palestinian unity government unless it meets international conditions, Mr Olmert's office said on Saturday.

The Israeli official said the agreement was reached in a telephone conversation on Friday.

—Reuters