Hamas leader Meshaal acknowledges Israel exists

DAMASCUS, Jan 10 (Reuters) Hamas acknowledges the existence of Israel is an established fact, the movement's exiled leader Khaled Meshaal told Reuters today, softening the group's refusal to recognise the Jewish state.

Israel is a ''reality'' and ''there will remain a state called Israel, this is a matter of fact,'' Meshaal said in an interview.

''The problem is not that there is an entity called Israel,'' said Meshaal. ''The problem is that the Palestinian state is non-existent.'' Israel and Western governments have put financial sanctions on the Hamas-led Palestinian government for refusing to recognise Israel, renounce violence and accept past peace accords.

Meshaal said Hamas would defy the Western conditions and refuse to consider granting formal recognition to the Jewish state until its demand for a Palestinian state was met.

Hamas wants a Palestinian state that includes Gaza, the West Bank and East Jerusalem and accepts the right of Palestinian refugees to return to homes lost in a 1967 war and before, Meshaal said.

''As a Palestinian today I speak of a Palestinian and Arab demand for a state on 1967 borders. It is true that in reality there will be an entity or state called Israel on the rest of Palestinian land,'' said Meshaal.

''This is a reality but I won't deal with it in terms of recognising or admitting it,'' he added.

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