US open to Israel's unilateral move on border

Secretary of State Condoleezza Rice would not rule out support for the plan by the Kadima Party, which took first place in this week's Israeli elections on a platform of withdrawal from major areas of the West Bank.

Rice suggested the success of last year's Israeli pullout from Gaza and the accession of the militant Islamic group Hamas to power in the Palestinian camp had changed the equation in the peace process.

"So I wouldn't on the face of it just say, absolutely, we don't think there's any value in what the Israelis are talking about," she told reporters aboard her plane en route to a four-day tour of key European allies.

Rice said US officials had not discussed with Kadima's leader, Acting Prime Minister Ehud Olmert, his idea of roughly using Israel's security barrier along the West Bank to set its permanent border with or without the Palestinians.

But the tone of her remarks contrasted with previous US statements warning the Israelis against doing anything that would prejudge negotiations on the border or other so-called final-status issues.

"Of course, everyone would like to see a negotiated solution. That's what the road map is all about," Rice said, referring to the US-backed plan aimed at creating a Palestinian state with mutually agreed frontiers.

"I would note that if you are going to have a negotiation, though, you have to have partners, and the Palestinian government that has just been sworn in does not accept the concept of a negotiated solution."

Rice also cited the precedent of what she called Israel's "coordinated unilateral withdrawal" last year from Gaza that was backed by the United States and the international community.

"So I think it depends on what is being discussed here," she said of the Kadima plan, which has been severely criticized by the Palestinians as likely to spark further conflict.

Israel and the United States both consider Hamas a terrorist group and will have nothing to do with it until it gives up armed resistance, recognizes the Jewish state's right to exist and agrees to abide by previous agreements.

Ismail Haniya, the new Hamas prime minister, pledged after being sworn in Wednesday to work with Palestinian Authority president Mahmud Abbas and signaled that he was not against negotiations with Israel.

But while Rice said the US administration still recognized the moderate Abbas as a duly elected leader of the Palestinian people, she appeared cool to the idea of conducting talks through him.

"We can't ignore the fact that there is also a Palestinian government that does not recognize the requirements ... that are necessary for negotiation," she said.

Rice also said Washington's review of assistance to the Palestinians living under a Hamas-led government was drawing to a close and "I would expect to be able to look at some decisions pretty soon."

She said the Americans were mulling over the levels of aid, what assistance could be considered humanitarian, which funds could be channeled through non-governmental organizations and other issues.

The United States is adamant it will not provide funds to a Hamas-run government, she said. But she added, "We're trying to be as generous as possible to the Palestinian people because we know they have severe humanitarian needs."

Iran was likely to dominate Rice's trip to Germany, France and Britain. But the new Israeli-Palestinian situation was expected to figure in her talks with German Chancellor Angela Merkel, French President Jacques Chirac and British Foreign Secretary Jack Straw.

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