US-EU Missile Talks

Steinmeier, whose country currently chairs the European Union, indicated after talks in Washington with US Secretary of State Condoleezza Rice that his main concern is to avoid a rift over the issue among EU nations.

Washington's interest in defending itself against missile attacks "is legitimate and we have to respect it," he said. But the US plan to base the system in eastern Europe "requires discussions," he added.

"The Cold War is over and we are all living under new conditions," Steinmeier told reporters at a joint press conference with Rice.

He welcomed a remark by Rice that the US is in talks with Moscow to try to soothe Russian misgivings. The aim is to "avoid misunderstandings that might have unintended consequences," Steinmeier said.

German parties split by missile plan

The US is negotiating with NATO members Poland and Czech Republic, both former Soviet satellites, to host ballistic missile defense components. Plans call for a radar tracking station in the Czech Republic and up to 10 interceptor missiles to be based in Poland.

The US anti-missile shield plan has divided politicians in Germany's grand coalition government. Chancellor Angela Merkel has said that NATO should be responsible for handling the issue while Kurt Beck, head of the Social Democratic Party with which she governs, said the proposal could spark a news arms race.

The US, however, maintains that the plan is designed to counter threats from countries such as Iran or North Korea and would pose no threat to Russia.

"The more we explain, the better"

"We live in a world where we face small nuclear threats, small potential missile threats from for instance Iran," she said. "In that world, a limited missile defense that can deal with small threats is very much a stabilizing factor, not a destabilizing factor."

But EU leaders who met Rice at the State Department said Russia's objections must at least be listened to.

"It is true that the Russians have a hypersensitivity of having infrastructure moving to their borders," said EU foreign policy chief Javier Solana. "Therefore the more we talk, the more we explain, the better."

EU to continue Palestinian aid

Monday's talks also addressed how the international community would respond to the newly formed Palestinian government.

The new government was officially formed over the weekend grouping the Western-backed Fatah part of president Mahmud Abbas and the radical Islamic movement Hamas, which Israel, the US and EU consider a terrorist group.

EU Commissioner for External Relations Benita Ferrero-Waldner, who was also in Washington with Solana and Steinmeier, said the EU would continue its temporary aid to the new Palestinian government for three months.

"It is very important that at this delicate moment we at least can go on with our international temporary mechanism in order to see that the Palestinian people will not suffer in this period when we have of course to make a judgment on the new unity government," Ferrero-Waldner said.

The EU ceased direct aid to the Palestinian government when Hamas came to power following last year's election and subsequently set up a temporary mechanism for sending aid to the Palestinians.

Washington has criticized Hamas Prime Minister Ismail Haniya for reaffirming his government's support for "resistance" against Israel and wants to maintain an aid embargo until the Palestinian government formally recognizes Israel and renounces violence.