Former British prime minister Tony Blair will visit Israel next week on his first trip tot he region in his new capacity as Quartet envoy to the Middle East.

Blair said Thursday he was optimistic momentum could be regained in talks between Israel and the Palestinians.

Speaking at a press conference following the Quartet meeting in Lisbon, Blair said there is no more important issue for peace and security in the world, and that he felt duty-bound to do what he could.

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He brushed aside suggestions that his limited mandate as special envoy to the Quartet, and the group's refusal to deal with the hardline Palestinian movement Hamas, would hamstring his mission, which begins in earnest when he makes his first trip to the region expected in the coming days.

"I'm nothing if not an optimist," Blair said following a meeting that brought together senior representatives from the United States, the European Union, the United Nations and Russia, which together comprise the Quartet.

"I will probably have need for all that quality of optimism in this task ahead, but I am determined to try," he continued.

Blair gave no specifics on when he would make his first visit to the region, saying only that it would be soon, and that he would return later for a longer trip. President Shimon Peres has said he would be meeting with Blair in Israel on Tuesday.

Before the meeting, the United States and European Union held firm Thursday to their refusal to deal with the militant Palestinian Hamas movement.

Secretary of State Condoleezza Rice and Portuguese Foreign Minister Luis Amado, whose country holds the rotating EU presidency, both rejected any dealings with Hamas, even as some questioned if the stance could compromise Blair's work with the Palestinians.

"Hamas, I think, knows what is expected for international respectability," Rice told reporters at a news conference in Lisbon with Amado shortly before the international diplomatic Quartet was to hold its first high-level meeting with Blair.

She said neither the Quartet nor Washington would deal with Hamas unless it recognizes Israel's right to exist and renounces terrorism, ruling out its participation in an upcoming Middle East peace meeting called by President Bush.

"I see no conditions at the moment to engage (in) new relations with Hamas without a new position from them," Amado said.

In addition to Blair making his first appearance before the Quartet principals, Thursday's meeting will also be the first at its most senior level since Hamas wrested control of the Gaza Strip, ousting Palestinian Authority Chairman Mahmoud Abbas' Fatah faction-led government, which the Quartet and Israel recognize as legitimate.

The power grab split the Palestinian leadership and placed yet another obstacle in the way of a Mideast peace deal. But it also prompted Israel and the West to seek ways to shore up the beleaguered Abbas.

Rice said she sensed a kind of momentum building in Middle East peace efforts, including Blair's appointment as Quartet envoy and Bush's call for a meeting this fall between Israel, the Palestinians and neighboring Arab states.

On her way to Lisbon, Rice hailed Blair as a historic and passionate leader, saying his debut as envoy could breath new life into long-stalled talks between Israel and the Palestinians.

At the same time, she defended the decision to limit Blair's mandate to helping Palestinians develop their infrastructure and economy, saying his role would complement U.S.-led diplomatic efforts - and that there was plenty of work for everyone.

"This is a very skilled, respected, historic figure in many ways in the world, who is absolutely dedicated to democracy, to building a better Middle East," Rice told reporters aboard her plane.

While Blair brings gravitas and enthusiasm to the role, critics say his limited mandate to help the Palestinians develop institutions and rule of law along with orders not to deal with Hamas will make it difficult for him to achieve a breakthrough.

Rice, who as America's senior diplomat is charged with the role as chief peacemaker, defended the division of responsibilities.

"There is also a political track that for a variety of reasons, the United States is committed to lead in coordination with the Quartet," she said.

"Blair's role is something that is completely complimentary and if we all work together, and there is plenty to do, perhaps we can finally deliver," Rice said.

The Quartet should also endorse U.S. plans to revive Israeli-Palestinian peace moves when they meet on Thursday, Rice said.

"The Quartet members have already made clear that they endorse what the president has said," she said.

Egyptian foreign minister says Mideast conference to be held in New York in September
Egypt's Foreign Minister Ahmed Aboul Gheit said Thursday that the Mideast peace conference called for by Bush will be held in September on the sidelines of the UN General Assembly meeting in New York.

Aboul Gheit said that ahead of the conference, Rice will discuss its agenda with Arab foreign ministers on July 31 in the Egyptian Red Sea resort town of Sharm el-Sheik.

"Egypt's vision is that the meeting should handle a wide number of issues, including launching the peace process in active negotiations between the Israeli and Palestinian parties," Aboul Gheit told reporters at a press conference in Cairo.

However, Suleiman Awad, the Egyptian presidential spokesman, later told The Associated Press that it is not yet clear when or where the Mideast conference will be held.