Merkel urges Fatah, Hamas to meet Quartet conditions

BERLIN, Feb 23 (Reuters) Germany, president of the European Union, urged a new Palestinian unity government today to comply with the three conditions set out by the Quartet of Middle East peace negotiators.

German Chancellor Angela Merkel, speaking after a meeting with Palestinian President Mahmoud Abbas, stuck closely to the line taken earlier this week by the Quartet and gave no ground to the Islamic militant group Hamas.

''We welcome the formation of a government of national unity on the condition that certain conditions are fulfilled,'' Merkel told a joint news conference with Abbas.

''That would mean that Israel's right to exist would be recognised, that violence is ended and that international treaties which have already been agreed are accepted, including by Hamas.'' The Quartet, comprising the United States, EU, Russia and the United Nations, is divided over how to deal with the planned new goverment between Abbas's Fatah movement and Hamas, which the United States views as a terrorist group.

The United States wants to continue to isolate the government if it does not meet the three conditions and maintain an aid embargo, while Russia and some other European governments favour a softer line.

But Merkel's comments are unlikely to give much hope to Hamas which said on Thursday it was encouraged by the Quartet's ''wait and see'' approach.

At a meeting in Berlin on Wednesday, the Quartet failed to agree on how to deal with the Palestinian government or on an aid embargo imposed on the Palestinians last year, when Hamas came to power.

Merkel also urged Abbas to help secure the release of Israeli soldier Gilad Shalit as a first step towards resolving the Israeli-Palestinian conflict.

She said Shalit's release could lead to a prisoner exchange between the Israelis and Palestinians and further steps aimed at building confidence between the two sides.

Abbas agreed with Merkel's calls but said the release of Shalit, captured in June 2006, should be tied to the release of Palestinian prisoners by the Israelis.

''I stress that Shalit should be freed and the question of missiles should be solved,'' he told reporters. ''The calming of tensions between us and the Israelis must be comprehensive and, similarly, the smuggling of weapons must be ended.'' ''On the other hand, there are over 10,000 Palestinian prisoners,'' he added. ''We call for their freedom. We cannot say 'Freedom for Shalit' without saying 'Freedom for the Palestinian prisoners'.'' REUTERS SAM RK2057