the first meeting between the two leaders since Olmert's election in April -- the King stressed the importance of confidence-building measures that would facilitate a resumption of peace talks between Palestinians and Israelis.

King Abdullah said that peace negotiations needed to resume and move forward on the basis of the Road Map, which, he stressed, has outlined the only realistic plan to achieve an agreement that would result in the establishment of a viable, independent Palestinian state living side-by-side with a secure Israel.

The King said any military escalation could bring to a halt efforts to revive the peace process.

King Abdullah also expressed Jordan's concern about the worsening economic and humanitarian situation in the Palestinian areas, saying that the situation could adversely affect prospects for a resumption of peace negotiations.

Major foreign donors have suspended direct financial assistance to the Palestinian authority since January elections in the Palestinian territories. The loss of aid has adversely affected the lives of millions of Palestinians, especially public sector employees.

The Middle East Quartet last week announced its decision to release US$126 million of EU funds to the Palestinians through the office of the presidency. King Abdullah described the measure as a positive step. However, he added, that urgent measures with an immediate and tangible impact on Palestinian lives were also necessary.

The King urged Olmert to facilitate the flow of funds and other aid, saying that sustained humanitarian assistance was necessary to alleviate Palestinian suffering and preserve Palestinian unity. Misery and chaos in the Palestinian territories would adversely affect the prospects for a resumption of negotiations, he added.

Ahead of the breakfast, King Abduallah received Palestinian President Mahmoud Abbas in Aqaba. Abbas briefed the King on the latest developments in the Palestinian territories and on the latest Israeli measures.

The breakfast meeting fell on the second day of the Nobel Laureates conference, organized by the King Abdullah Fund for Development and the Elie Wiesel Foundation for Humanity and has brought together dozens of Nobel Laureates and internationally renowned public figures to discuss challenges to global security and stability, especially in the fields of nuclear non-proliferation, education, health and poverty and economic empowerment.

A special session later today will be dedicated to the Israeli-Palestinian peace process. As part of the conference's focus on peace, Wiesel yesterday hosted a conversation with President Abbas and conference participants; he will hold another today with Prime Minister Olmert.