Egypt rejects conditions on Palestinian government

CAIRO, Feb 25 (Reuters) Egypt rejected on Sunday imposing any conditions on the new Palestinian unity government today and said it was up to the Palestinians to convince key international mediators to end the US-led financial sanctions.

Jordan's King Abdullah has said there was common Arab ground that the unity government must adhere to the demands of the Quartet of Middle East mediators: recognise Israel, renounce violence and accept interim peace deals.

The king's remarks in an interview broadcast on Saturday cast doubts on the willingness of major Arab donors to sidestep a U.S.-led embargo of the Hamas-led government.

But Egyptian presidential spokesman Suuleiman Awad said: ''There is always consultation between Egypt and Jordan but the Egyptian position is that ... we cannot set preconditions.'' He was speaking after talks in Cairo between Egyptian President Hosni Mubarak and King Abdullah.

''The policies that the new government will adopt is an internal Palestinian affair and Egypt has not and will not interfere to impose stances,'' he told a news conference.

Western diplomats have said the agreement this month in Mecca, Saudi Arabia, between Hamas and Abbas's Fatah group has widened the divisions in the Quartet -- the United States, the United Nations, the European Union and Russia -- on how to deal with the new government.

The United States insists on maintaining the boycott, while some European countries and Russia favour a softer line.

Awad said the onus was on the Palestinians to take their case to the world with a ''united voice'' to lift the sanctions, which have pushed the Palestinian Authority to the brink of financial collapse.

''Lifting the economic and political embargo will not happen by appeals ... It depends on the ability of the Palestinian side to put the interests of the Palestinians above those of the factions and to speak with a united voice,'' he said.

The letter from Abbas reappointing Hamas leader Ismail Haniyeh as prime minister called on the government to respect old agreements signed with Israel by the Palestine Liberation Organisation (PLO), which recognises the Jewish state.

Hamas officials have said they do not object to the PLO negotiating with Israel but that any deal would have to be approved by the Palestinian parliament, where the Islamist group maintains a majority.

REUTERS SAM RK2042