Olmert Rules Out Working With Palestinians

The Islamic militant group, which has been responsible for dozens of suicide bombings on Israelis and has long called for the destruction of the Jewish state, won 74 of the 132 seats in legislative elections Wednesday. Hamas leaders have vowed since the balloting to continue the "resistance."

Olmert said the international community accepts Israel's conditions for renewing contacts with the Palestinians.

"Without a clear renunciation of terror, a recognition of Israel's right to exist in peace and quiet and security and a recognition of all the (Israeli-Palestinian) agreements and understandings ... and of course, the annulment of the Hamas charter that calls for the destruction of Israel, Israel won't hold any contacts with the Palestinians," the Israeli leader told a Cabinet meeting.

Olmert outlined the Israeli conditions in talks in recent days with French President Jacques Chirac, Egyptian President Hosni Mubarak, Jordanian King Abdullah and U.N. Secretary-General Kofi Annan, his office said.

German Chancellor Angela Merkel is to arrive in Israel later Sunday for a visit.

Olmert has not decided whether to accept defense officials' recommendation to stop transferring to the Palestinian government the tens of millions of dollars in taxes and customs it collects monthly from Palestinians, fearing this could cause the cash-strapped Palestinian Authority to collapse, officials said. Israel is slated to transfer the money on Wednesday.

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