Hamas' Damascus-based political chief Khaled Meshal reiterated his group's hardline stance towards Israel, insisting Saturday on the Palestinians' right to wage "legitimate resistance."

Meshal, in comments after talks between Egyptian and Palestinian leaders in Cairo on Saturday, said that "firing rockets (at Israeli territory) is the right of the Palestinian people, and a matter of legitimate resistance against the occupier."

As to whether "the rockets" are also meant to put pressure on Palestinian President Mahmoud Abbas, Meshal only said that exerting "internal pressure" is not part of his group's policy.

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"We want dialogue in internal and external issues (with Abbas)," he added.

Meshal, during a joint press conference with Arab League chief Amr Moussa, urged Arab countries and the international community to take immediate steps to lift the economic embargo or else the situation in the Palestinian territories "will explode."

He described the efforts to end the suffering of the Palestinian people and "fulfill commitments" to them as "very slow." If Arab countries began to take real steps, European countries would follow their lead.

Commenting on Meshal's remarks, Moussa said that Arab countries will never be part of "starving" the Palestinian people. He also insisted that Arab countries had been transferring money to the Palestinian territories since the Arab Summit last March in Riyadh.

Meshal met Friday evening with Abbas, who in turn met with Egyptian President Hosni Mubarak on Saturday. Their talks concerned such issues as the fragile ceasefire in the Gaza strip, the steps that should follow the formation of a Palestinian unity government and the planned prisoner exchange with Israel.

Egypt has been seeking for months to mediate a prisoner swap involving Israeli soldier Corporal Gilad Shalit who was kidnapped by Palestinian militants last June, in exchange for Palestinians currently held in Israeli prisons.

Meshaal on Saturday denied responsibility for the lack of a deal, saying that the "ball is in Olmert's court now."

Hamas had earlier demanded that the prisoners' swap be instantaneous and wanted a greater say in the conditions of the captives' release. Above all, Hamas said that that they should specify the names of the Palestinian prisoners to be released, a demand so far rejected by Israel.

Syria, where Meshal lives in exile, was also accused of hampering negotiations over the prisoner swap, allegedly pressuring Hamas not to accept proposals put forward by Egypt.

Abbas and Meshal have not met since February when Saudi Arabia mediated a Mecca agreement over building a national unity government between Hamas and Abbas' Fatah movement.

In Cairo, Meshal said that he would meet again with Abbas, but did not give a date or venue. He said their talks centered mainly on reorganizing the Palestine Liberation Organization (PLO) which he described as the big house that unites the Palestinian factions.

On another issue, Meshal commented on the case of BBC correspondent Alan Johnston who was captured at gunpoint in Gaza City by unknown militants. He said the kidnapping harmed the Palestinian people and did not serve their national cause.

He said the case needed "a wise national decision."

A formerly unknown group calling itself the "Brigades of Jihad and Monotheism" claimed last month that it had killed Johnston, 44, after the Palestinian government had failed to secure his release.