Israel cautions EU against concessions on Hamas

Ottawa: Israel cautioned the European Union against going soft on a Palestinian government including the Islamist group Hamas, saying this could lead to "more terror."

Israeli Foreign Minister Tzipi Livni, on a visit to Canada, made the remarks to reporters on Monday three days after EU leaders welcomed an agreement in Makkah last month between Hamas and the moderate Fatah to form a unity government.

"If somebody thinks that Hamas, while not recognising Israel, while using terror not in order to create a Palestinian state but to demolish the Jewish one ... can be partners to something, they are wrong," she said.

"In a way this can lead to more stagnation at least, or to more terror."

The EU leaders said after a meeting in Brussels that they were ready to work with a Palestinian government that adopted a platform reflecting principles laid down by the Quartet of Middle East mediators - the United States, Russia, the EU and the United Nations.

The Quartet has called for a future government to accept Israel's right to exist, renounce violence and recognize past peace accords.

Livni urged the EU, which with the United States had suspended direct aid to the Palestinian government after Hamas beat Fatah in elections last year, to insist on the Quartet's conditions rather than giving in.

"Hamas are looking at Europe, and they want to see this kind of hesitation. When they sense this smell of hesitation, why should they change in the future?" she asked.

Meanwhile, Israeli Vice Premier Shimon Peres said on Tuesday in Tokyo that a revived Mideast peace proposal by Saudi Arabia represents progress in the Arab position, but all
its elements need to be fully negotiated.

Peres, in Tokyo for a four-way "confidence-building" conference with the Palestinians, Jordan and Japan, said
Israel rejects any preconditions on discussing the Saudi proposal to restart long-stalled peace efforts.

The plan calls for a full Israeli withdrawal from areas captured in the 1967 Middle East war, and the establishment
of an independent Palestinian state. In exchange, Israel would receive full diplomatic recognition from the Arab
world.

"As an Arab position, it is progress, and we would like to continue negotiations," Peres told reporters. "But it
is the opening position, not yet the fallback," he said, saying any final agreement would be different from the
original proposal.

An Arab summit in Saudi Arabia on March 28-29 is expected to revive the 2002 Saudi proposal. The plan was rejected by
Israel at the time, but Israeli leaders are now showing renewed interest as talks with the Palestinians yield few
results.