Bush to meet Abbas, rejects unity coalition -Erekat

RAMALLAH, Sep 16 (Reuters) US President George W Bush will meet Palestinian President Mahmoud Abbas on Wednesday in New York to push forward peace talks but rejects Abbas's planned unity government with Hamas, a Palestinian official said.

''We agreed to pursue the talks on all issues with President Bush and (Secretary of State) Condoleezza Rice,'' Chief Palestinian Negotiator Saeb Erekat said after meeting US Consul-General Jacob Walles.

Erekat said Abbas would meet Bush in New York during his visit to the U.N. General Assembly. The Palestinian president has said he would present to the US leader ideas to help revive a stalled US-backed ''road map'' peace plan.

Palestinian officials also said Walles told them the US leadership rejects Abbas's deal with the Hamas militant group to form a unity government, reiterating a call for Hamas to disarm and recognise Israel and peace agreements with the Jewish state.

Hamas, which is sworn to destroying Israel, won a parliamentary election in January to form the government.

Hamas hopes that a unity government with Abbas's Fatah group will lead Western powers to end an aid embargo imposed after Hamas took power. Much of the Palestinian territories has suffered a massive economic crisis as a result.

The European Union has praised Abbas's deal with Hamas and has suggested direct aid could be renewed.

Erekat said Abbas would not discuss the unity coalition until he returned from his trip. Palestinian officials have suggested the new government could be formed within weeks.

But Abbas has said issues would still need to be resolved before the formation of the cabinet, including the release of an Israeli soldier captured by Gaza militants in exchange for Palestinian prisoners and a halt to Israeli attacks.

REUTERS SY VV1710