Hamas today ended talks on forming a coalition after apparently failing to persuade any of the other Palestinian parties to join its government.

The Islamic party said it would nonetheless present its Cabinet to the Palestinian parliament for approval early next week.

Mushir al-Masri, a Hamas MP, said that today’s round of negotiations was the final one. He did not say whether the talks have failed. However, one of the smaller parties, the Popular Front for the Liberation of Palestine, said earlier that it did not find common ground with the Islamic militants.

Hamas won a landslide victory in the first Parliamentary elections it contested and can command an overall majority in Parliament. The party takes an uncompromising stance on the Middle East peace process, calling in its constitution for the destruction of the state of Israel.

The more moderate Fatah Party of Mahmoud Abbas, the Palestinian President, has said repeatedly that it would not join a Hamas government.

"We are about to complete consultations ... today," said Mr al-Masri. "We hope that we can present the government to the Palestinian parliament in its session on Monday."

Mr al-Masri said that if Hamas does not find coalition partners, it will present a Cabinet staffed with Hamas politicians and independents.

He acknowledged that Hamas encountered trouble in coalition talks, in part because of the group’s refusal to recognise Israel. "This issue is rejected by Hamas," he said.

Meanwhile Tony Blair said today that Britain will not give money to a Hamas-led government in the Palestinian territories as long as it refuses to acknowledge Israel’s existence.

The Prime Minister acknowledged that this might prompt the Palestinian Authority to turn to Iran for support, but he said that he had little choice.

"In circumstances where if we start putting money into Hamas itself and into the government, and they’re still committed to getting rid of the state of Israel, it’s a pretty difficult thing to justify to the British taxpayer," he said at his monthly news conference.

He said Britain was one of the biggest donors to the Palestinian territories, giving £156 million ($271 million) directly or through the European Union this year, and would remain so in support of humanitarian and other causes.

"What we cannot do is end up funding the government when the government is inimical to the whole basis on which we want to settle the Middle East problem," he said.

European diplomats are searching for ways to keep aid to the Palestinian people flowing without supporting Hamas, which the West labels a terrorist group.

Mr Blair says that while Britain recognizes Hamas’ democratic mandate after its recent election victory, the militant group will have to give up violence, recognize Israel’s existence and negotiate peacefully if it wants London’s political and economic support.

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