U.N. chief says time not ripe to talk with Hamas

By Mohammed Assadi

RAMALLAH, West Bank (Reuters) - U.N. Secretary-General Ban Ki-moon urged Israel on Sunday to embrace Palestinian President Mahmoud Abbas as a peace partner, a call in contrast with new Israeli criticism of the moderate leader.

"Achieving peace will require all parties to go further then they have done before. But it can and must be done," Ban said after talks with Abbas.

"My message to Israel and the world from here in Ramallah is that I am convinced that President Abbas is ready," he said on his first visit to the region as U.N. chief, a trip coinciding with a tour by U.S. Secretary of State Condoleezza Rice.

Abbas said the aim of Rice's visit was to "to explore the horizons of resuming the peace process". He said he would meet her in Amman on Monday.

Speaking to his cabinet, Israeli Prime Minister Ehud Olmert accused Abbas of reneging on what he said was a promise by the Fatah leader to secure, before forming a coalition with Hamas earlier this month, the release of an Israeli soldier held by Gaza militants.

"Obviously, all these things will not, in the near future, facilitate contacts between us and the Palestinian Authority," Olmert said in broadcast remarks.

"And there is no doubt that a completely different kind of conduct by the Palestinian Authority is needed here in order for the proper atmosphere to be created, that could encourage a fruitful negotiating process," Olmert said.

Abbas said in an interview on Thursday a framework had been agreed with Israel that could secure Corporal Gilad Shalit's release. He has been held since June and Palestinians want Israel to release hundreds of their jailed brethren in exchange.

The new partnership between the secular Fatah movement and Hamas Islamists, and its failure to meet policy demands by a "Quartet" of Middle East mediators, have led Olmert to declare he would limit future talks with Abbas to humanitarian issues.

PRIORITIES

Ban said the Palestinian coalition's immediate priorities should be stabilizing the situation in Gaza, where internal violence has flared over the past days, releasing Shalit and consolidating a ceasefire in the territory with Israel.

"Such steps would address a vital Palestinian interest and would be strongly welcomed by the international community," he said.

Ban said he and Abbas discussed steps Israel should take -- releasing withheld Palestinian tax revenues, easing travel restrictions on Palestinians, freezing "all settlement activity" and ceasing construction of a West Bank barrier.

"I will be encouraging Prime Minister Olmert on those issues tomorrow as well as hearing his concerns," Ban said.

Ban said he had no plans to meet Prime Minister Ismail Haniyeh, a Hamas leader, or other Hamas members of the cabinet during the visit and called on the unity government to abide by the Quartet's terms.