JERUSALEM, 20 February 2007 — US Secretary of State Condoleezza Rice held a rare summit with Israeli and Palestinian leaders yesterday but achieved little concrete progress in reviving the peace process other than a pledge for further talks. Rice said all sides had discussed a future Palestinian state at the first such meeting in nearly four years, but warned that peace would not come through terror, in a clear reference to the dominant Islamist movement Hamas.

Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas agreed to meet again soon, Rice said, adding that she also planned to return to the region to pursue peace efforts. Hopes of a breakthrough in Middle East peacemaking have been complicated by a deal between Abbas and Hamas — blacklisted by the West as a terrorist group — to form a unity government in a bid to end a crippling aid boycott. After the talks, Olmert insisted Israel would not cooperate with any government that did not meet international demands for peace, while Hamas lashed out at what it labeled US isolationism and “blackmail.”

“All three of us affirmed our commitment to a two-state solution, agreed that a Palestinian state cannot be born of violence and terror, and reiterated our acceptance of previous agreements and obligations, including the road map,” Rice said after over two and a half hours of talks in a Jerusalem hotel.

“The president and prime minister discussed their views of the diplomatic and political horizon and how it might unfold toward the two-state vision of (US) President (George W.) Bush,” Rice added.

Underscoring the continued tensions, military sources said an Israeli truck driver had been stabbed and killed in a Palestinian village in the occupied West Bank, west of Abbas’ political powerbase of Ramallah. Yesterday’s meeting was the first of its kind since 2003 when Rice’s predecessor, Colin Powell, met Olmert’s predecessor, Ariel Sharon and Abbas, then Palestinian prime minister.

But Rice’s visit, her 10th to Jerusalem as secretary of state and her fourth in just five months, comes with both Olmert and Abbas weakened by political struggles at home. She said the three leaders had discussed the long-standing international demands of the Palestinian government, as Fatah and Hamas work to form a unity cabinet they hope will lead to a resumption of desperately needed Western funds.

“The president and prime minister also discussed issues arising from the agreement for the formation of a Palestinian national unity government and the position of the Quartet that any Palestinian Authority government must be committed to nonviolence, recognition of Israel and acceptance of previous agreements and obligations, including regarding the roadmap,” she said.

The European Union, Israel and the United States have insisted the new government meet the three conditions in exchange for ending their boycott. While Abbas says the new unity government will honor existing agreements with Israel, implicitly recognizing the Jewish state, Washington has remained publicly noncommittal and Israel has rejected the deal outright.

Following lunch at the five-star David Citadel Hotel, Olmert said Israel would not work with a Palestinian government that snubbed the international conditions. “We will not recognize any government which does not respect these commitments. We will not cooperate with this government nor with any of its ministers,” he told a meeting of his centrist Kadima party.

Chief Palestinian negotiator Saeb Erekat said Abbas had argued that the new government should be judged on having recognized his authority to negotiate with Israel, and that they should understand the separation between political parties and the government.

In Gaza City, Palestinian prime minister-designate Ismail Haniyeh told the weekly meeting of his Hamas-led Cabinet he “regretted that the American administration always behaves according to the logic of isolation and boycott which has proved to be a failure.” Hamas spokesman Ismail Radwan slammed what he called US “blackmail” and called on Washington to recognize the Palestinian government.

Rice said the two leaders “reiterated their acceptance of previous agreements and obligations,” and that Olmert and Abbas would meet again soon. Rice did not give a date, but said she expected to return to the region soon.