UNITED NATIONS, May 9: The quartet of Middle East peace brokers haggled on Tuesday over how to channel aid to the Palestinians, with signs the United States might soften its stand to prevent the collapse of a Hamas-led government.

The group of international mediators — the United States, Russia, the European Union and the United Nations — first heard gloomy scenarios from foreign ministers of Egypt, Jordan and Saudi Arabia and then headed into private talks to discuss proposals to ease the crisis.

“It is a difficult situation, but I want to say that we are not going to let the Palestinians starve,” said the European Union’s foreign policy chief Javier Solana after talks with the Arab ministers.

A western diplomatic source close to the discussions said the United States was edging closer to agreeing to a ‘temporary international mechanism’ to channel money to pay employees of the Hamas-led Palestinian Authority who have not been paid for the past two months.

“America is softening its position. The Arab foreign ministers made very clear if the Palestinian Authority collapses then you could potentially have a civil war,” said the source, who asked not to be named as negotiations were at a delicate stage.

He said the money could be handled via a body such as the World Bank which could set up a special account for a limited period.

However, he stressed no final decisions had been made.

“The Americans are very clear, it would be limited in duration and limited in its scope,” he said.

The United States has taken the toughest line against Hamas since it won January elections and made clear on Tuesday that Hamas was to blame for all of its current financial problems.

“Any failure of Hamas to deliver on those needs is that of Hamas alone,” said a senior State Department official.

The official said the US would make clear in meetings that Hamas had to ‘fix the problems’ and it could start off by meeting the demands of the international community, which include recognising Israel, renouncing violence and signing on to previous Palestinian-Israeli agreements.

While tough on Hamas, Rice was expected to announce an additional $10 million in US funding for medical supplies and equipment for the Palestinians but this would be directed through UN agencies and would not reach a Hamas government.

US officials did not immediately comment on whether they were close to agreeing to proposals from the Europeans and the Arab ministers but a spokeswoman for Solana was optimistic.

“We are encouraged and we are working on it (getting the US to agree),” said Christina Gallach of the EU.—Reuters