Abbas Agrees to Resume Peace Talks With Israel; Monitoring Group to Meet

Rice has resisted calls from Arab leaders for a cease-fire between Hamas and Israel, saying Israel has a right to defend itself. She has noted that Israel needs to be concerned with any loss of civilian life and whether its attacks will make it difficult for Abbas to continue negotiating.

Livni said Israel has not left the bargaining table, despite a suicide bombing and near-constant rocket attacks. "We are not willing to leave Hamas in control of our lives and future. I expect my co-partners . . . to act the same. It is important for them as it is important for us," she said.

Under the peace process launched last year in Annapolis, Md., the Israelis and Palestinians are to negotiate a peace deal while also taking incremental steps on such issues as ending the expansion of Jewish settlements and bolstering the ability of Palestinian security forces to fight militant groups. Under the theory advanced by the Bush administration, progress on both fronts will bolster Abbas's low standing among Palestinians and marginalize Hamas.

Livni, arguing both confrontation and negotiation, said the Annapolis understanding was "based on the fact that we will negotiate with the pragmatic leaders even though they don't control Gaza Strip right now, while meeting the challenge coming from Gaza Strip in order to change the situation in Gaza Strip."

Livni said Hamas has continued to build its military strength, calling it now "a small army," largely because of smuggling into Gaza that Israel contends is tolerated by Egypt.

Correspondent Griff Witte contributed to this report.