ASWAN, Egypt - Secretary of State Condoleezza Rice said Sunday it was important for Israel and the Palestinians to establish a "common agenda" to move forward on creating a Palestinian state -- an apparent break with Israel, which has ruled out peace talks for now.
Rice also said all the parties need to have a "destination in mind" to solve the Israeli-Palestinian conflict. But she conceded the sides were far apart, and had no specific proposal to get long-stalled peace talks moving.
She spoke at a news conference with Palestinian President Mahmoud Abbas, after their first meeting since the Islamic militant Hamas and Abbas' more moderate Fatah Party formed a new coalition government last week.
Israel has said it will not hold peace talks with Abbas now that he has joined forces with Hamas.
Rice said she would meet twice with both Abbas and Israeli Prime Minister Ehud Olmert during her fourth trip to the region in as many months.
"It's extremely important to establish a common agenda to move forward toward the establishment" of a Palestinian state, she said.
"I think it can help all of us to have a destination in mind," Rice said. "I think this time it is best to talk about that political horizon in parallel. But I sincerely hope in the future the parties themselves can talk about the political horizon themselves."
Abbas said he and Rice talked about holding more meetings with Olmert. He said he was satisfied with the renewed U.S. mediation efforts, which have not produced tangible results.
"All these meetings are part of the bilateral relations with Israel and the future vision that we are all seeking and working toward," Abbas said.
Abbas met earlier with U.N. Secretary-General Ban Ki-moon. But the U.N. chief shunned Hamas officials, dealing a setback to the new Palestinian government's efforts to win international recognition. Rice snubbed even U.S.-backed moderates in the Cabinet.
While welcoming the new government's formation, Ban said "the atmosphere is not fully ripe" for talks with Hamas, which has killed more than 250 Israelis in suicide bombings and refuses to recognize the Jewish state.
He expressed hope the new government's actions would "show a genuine commitment to the basic principles ... of peace."
Hamas and Fatah formed their alliance in the hope of halting deadly Palestinian infighting and persuading the West and Israel to resume crucial funding cut off after Hamas swept parliamentary elections a year ago.
But the new government's platform falls short of demands by the "Quartet" of Middle East peacemakers -- the U.S., EU, U.N. and Russia -- that Hamas renounce violence, recognize Israel, and accept past peace agreements.
Palestinians say it implicitly recognizes Israel by "respecting" peace agreements. Abbas, who hopes to restart peace talks with Israel, has said the deal is the best he can get from Hamas.
U.S. and European diplomats have held a stream of contacts with moderate members of the new coalition while avoiding Hamas ministers. The withheld funding has not been restored.
Palestinian officials rejected the notion of diplomatic cherry-picking.
"This government is one team," Information Minister Mustafa Barghouti said. "Whoever meets with one member is meeting with the whole government."
Israel welcomed the decisions by Rice and Ban not to meet with Hamas officials.
"We are happy to see world leaders and prominent figures like the secretary general continuing to uphold the Quartet principles," said government spokeswoman Miri Eisin.
Ban said he would urge Olmert during a meeting Monday to release frozen Palestinian funds, ease travel restrictions in Palestinian areas and halt settlement activity in the West Bank.
On Sunday, he visited the Aida refugee camp near the West Bank town of Bethlehem and inspecting Israel's separation barrier in the West Bank.
Senior U.N. officials and the Palestinian governor of Bethlehem, Salah Tameri, explained to the U.N. chief the difficulties caused by Israeli travel restrictions and the barrier.
Israel says it built the enclosure to keep out Palestinian militants, who have killed hundreds of Israelis in bombing and shooting attacks.
"This has strengthened my resolve and commitment to work for peace in the Middle East," Ban said. "This is a very sad and tragic thing to see many suffering from the construction of this wall, depriving opportunities for basic living."
