Foreign Minister Ahmed Abul Gheit has said Hamas movement should remain in office to guarantee stability in the Palestinian territories and that President Mahmoud Abbas should have the upper hand in negotiations with Israel to revive the peace process.

During a meeting at Saban Centre for Middle East Policy in Washington, an offshoot of Brookings Institute, on Wednesday, Abul Gheit said Hamas and Fatah must agree on common principles in order to render the projected meeting between Abbas and Israeli Prime Minister Ehud Olmert in Jerusalem on February 19 a success.

He said he disagrees with those who do not want to deal with Hamas, stressing that Hamas has gotten more than 30 per cent of votes in the latest elections and it is an influential force in the Palestinian street.

Abul-Gheit welcomed an agreement between Fatah and Hamas to form a Palestinian national unity government, that was reached on Thursday in Makkah, Saudi Arabia.

Abul-Gheit also welcomed Palestinian President Mahmoud Abbas's decision to assign Ismail Haniyeh to form the new government.

He said the Palestinian problem is behind at least 50 per cent of the Mideast problems and tensions between the East and the West.

On Iraq, Abul Gheit said the problem in Iraq lies in the sectarian fighting and the attacks on the foreign forces.

He said Egypt supports the new US plan on Iraq if it was meant to dismantle the militias responsible for sectarian violence.

As for the political and constitutional reform process, Abul Gheit said Egypt is going ahead with these reforms wisely and with steady moves for fear of any negative effects.

Meanwhile, Abul Gheit told reporters Thursday that his talks with US Secretary of State Condoleezza Rice, her deputy John Negroponte and National Security Advisor Stephen Hadley in Washington didn't tackle the release of Al-Ghad party leader Ayman Nour.