Israeli Acting Prime Minister Ehud Olmert said on Monday that he would be willing to hold peace talks with Palestinian President Mahmoud Abbas at least until Hamas takes control of a future Palestinian government.

"I have no interest in harming Palestinian National Authority Chairman Abu Mazen (Abbas) as long as he doesn't cooperate with Hamas and as long as the Palestinian government isn't led by Hamas, " Olmert told an European-Israeli economic forum in Tel Aviv.

He stressed that Israel will not play into the hands of extremists, indicating that Israel will stop transfer of tax payment to the Palestinian side if Hamas forms the next cabinet.

Olmert made the statements one day after Israel gave the PNA about 54 million U.S. dollars of tax payment following last Wednesday's delay in response to Hamas victory in the Jan. 25 Palestinian parliamentary elections.

Olmert told Sunday's cabinet meeting that from now on, the monthly transfer of tax revenue will not be made automatically.

Instead, the Israeli government will reexamine the situation each month and make a decision on whether to transfer the money.

He also lashed out at Hamas, saying the group's status as a terror organization remained unchanged despite its electoral victory.

Meanwhile, Abbas told Israel recently that he will continue to be responsible for diplomatic contacts with Israel despite Hamas' victory.

Abbas requested that Israel continue this dialogue rather than ignoring him as "irrelevant."

Hamas, a major militant group sworn to the destruction of Israel, beat Abbas's ruling Fatah movement in the elections by winning 74 of the 132 seats in the next Palestinian legislature.

Israel has said it would not deal with any new Palestinian government led by Hamas unless the group renounces violence, recognizes Israel's right to exist and accepts all agreements between the PNA and Israel.

After a meeting between Abbas and Hamas leaders in Gaza on Saturday, the group said a cabinet is expected to be in shape later this month after the new parliament is sworn in on Feb. 16.

Abbas said that any talks on the formation of the cabinet before the legislature's inauguration would be premature.

Source: Xinhua