Palestinians are “paying the price for the government’s positions,” Abbas spokesman Nabil Abu Rudeineh said after the meeting. “Unfortunately, everyone refuses to deal with us unless the government change its policy.”

Major Western donors, including the United States and the European Union, have withheld direct financial support from the Palestinian Authority since the formation of the Hamas-led cabinet, demanding that Hamas renounce violence and recognize Israel.

Several Arab and Muslim countries have offered stepped up assistance to the Palestinians, but pledges have either not been fulfilled or been delayed by financial institutions.

The long-ruling Fatah movement, which Abbas leads, was ousted decisively by the Islamic militant movement Hamas in Palestinian Legislative Council elections in January. Abbas remains president, with a tense relationship between the presidency and the Hamas-led cabinet.

Fatah has officially recognized Israel since the early 1990s.

The main issue in the four-hour talks was the financial crisis, which occurred after Hamas took office on March 29.

Haniyeh announced after the meeting that he and Abbas had agreed to continue discussing a solution to the financial crisis of the Hamas-led cabinet, but conceded that other issues remained to be resolved.

Haniyeh’s cabinet has been unable to pay the wages of about 160,000 civil servants in the Palestinian Authority for March and April.

“This is the first meeting of its kind that is held between the government and the president, after the government was sworn in five weeks ago,” he said.

Haniyeh said that the meeting with Abbas was “responsible and frank,” and that he agreed with Abbas to form a joint ministerial panel to continue their debates on resolving all outstanding issues.

“The fiscal crisis wasn’t created by the government. It was created by some international bodies, mainly the United States of America and Israel,” said Haniyeh.

“The government doesn’t have any problem in fundraising and getting funds from Arab and Islamic nations. The problem is related to how to get this aid (to the Palestinian authority). We agreed that this crisis is not only the responsibility of the government only. It is the responsibility of the president, as well as the factions, the banks and monetary authorities.”

The meeting was attended by Foreign Minister Mahmoud Al Zahar and Interior Minister Said Siam, as well as Fatah leader Azzam Al Ahmad and Abbas representative in the PLO Tawhi Fattouh.

“The meeting was serious, frank and deep. Both had discussed how to find quick mechanisms to find a solution to the crisis,” Abu Rudeineh said. “The president would help the government, according to the constitution.”

Abu Rudeineh said that Abbas’ “utmost goal ... is to seek an exit for the crisis and ways of lessening our people’s disaster.”