Mr Haniyeh, who was the Palestinian

prime minister until last month,

claims that contacts between Hamas and Britain

have increased since they worked together

to free the BBC's Alan Johnston,

who was held captive in Gaza for almost four months

The Johnston kidnapping forced Britain

to change its policy of not publicly meeting Hamas officials

Richard Makepeace, Britain's consul general in Jerusalem,

twice travelled to Gaza City to request

Mr Haniyeh's help in freeing Johnston

In a letter earlier this month, ten European foreign ministers,

including those of France, Spain and Italy,

urged Blair to find some way to talk to Hamas.

Faulting the international community's approach to the Hamas-led Palestinian government, the British House of Lords called on the European Union Tuesday, July 24, to engage Hamas as a key Palestinian player.

"We believe that the EU’s objective should be to attempt to maintain a peace process that is as inclusive as possible," said the influential Foreign Affairs subcommittee in a new report.

"Dialogue with the key parties is an essential aspect of the peace process."

The report, "The EU and the Middle East Peace Process," urged the EU to reach out to all Palestinian parties in order to achieve progress on ground.

The subcommittee, which groups 11 members of the upper house of parliament, warned that the situation in the Palestinian territories is fluid and could rapidly deteriorate.

It contended that the EU is in a stronger position than the Middle East Quartet to participate "actively and forcefully" with all parties involved.

"The EU needs to increase and sustain its effort to work more closely with all the main players towards an inclusive peace process and settlement."

The report came one day after former British prime minister Tony Blair began his first visit to the region as new Quartet Mideast envoy.

Blair has met Israeli Premier Ehud Olmert and Palestinian President Mahmoud Abbas, but no Hamas officials.

There have been increasing calls for contact with Hamas lately.

Colin Powell, the former US Secretary of State, said last week that Hamas is not going away and does enjoy considerable support among the Palestinian people.

In a letter earlier this month, ten European foreign ministers, including those of France, Spain and Italy, urged Blair to find some way to talk to Hamas.

"Undesirably Rigid"

The British parliamentarians regretted the "undesirably rigid" stances against the Hamas-led national unity government.

"The approach taken by the EU on the Quartet principles is not beyond criticism," said the subcommittee charged with scrutinizing European policies.

"Conditions about the formal recognition by Hamas of the state of Israel amalgamate elements of any final status negotiations with the preliminaries to such negotiations."

The report also criticized the US-led financial and political boycott of the Hamas government.

It lamented how the aid cut led to "a devastating effect on the socio-economic fabric and on the human rights situation in the Palestinian territories. "

"It is becoming evident that the Quartet approach contributed nothing to ameliorate the crisis," said the parliamentary subcommittee.

In the wake of June's bloody infighting that ended up with Hamas controlling the Gaza Strip, Washington adopted a "West Bank first" strategy to support Abbas.

The US and the EU immediately lifted the year-long aid freeze.

But analysts believe the Bush administration is betting on a losing horse if it thinks Abbas can oust rival Hamas.

Hamas leader claims UK has widened links

· Help in freeing BBC man 'opened new channels'

· Foreign Office denies any political contacts

The British government has expanded its links with Hamas in recent weeks, according to the organisation's leader, Ismail Haniyeh.

Mr Haniyeh, who was the Palestinian prime minister until last month, claims that contacts between Hamas and Britain have increased since they worked together to free Alan Johnston, the BBC Gaza correspondent, who was held captive in Gaza for almost four months.

"I cannot deny that there are now other contacts, other channels of communication with the UK and these involve people of high rank, although I am not personally involved," he claimed in an interview with the Guardian.

"The main aim of the contacts is to improve our democracy and governance. This is just part of the many contacts that are going on with other governments around the world."

He added that Britain wanted to keep the contacts secret.

Both the US and the EU have designated Hamas a terrorist organisation and pledged to isolate it until it adopts the principles of the Quartet of Middle East negotiators - a renunciation of violence, recognition of Israel and honouring all previous agreements made by the Palestinian Authority.

Officials at the Foreign Office and the British consulate in Jerusalem denied that there had been political links with Hamas and insisted that any contacts had been purely "humanitarian and consular".

They said it was possible that Mr Haniyeh had misunderstood the work of British non-governmental organisations such as Forward Thinking and Conflicts Forum, which have established contacts with Hamas.

Both groups work with former government advisers and civil servants and members of the House of Lords.

Forward Thinking "aims to promote a more inclusive peace process by engaging the religiously motivated Palestinian and Israeli political parties who have been previously excluded from ... dialogue."

The British government has sanctioned unofficial visits to the UK for senior Hamas officials in Gaza over the past 18 months.

In one of the first Ghazi Hamed, the former editor of Al Risala, the Hamas newspaper, visited the BBC and the Guardian. Ahmed Yusef, an adviser to Mr Haniyeh, has also visited the UK.

The Johnston kidnapping forced Britain to change its policy of not publicly meeting Hamas officials. Richard Makepeace, Britain's consul general in Jerusalem, twice travelled to Gaza City to request Mr Haniyeh's help in freeing Johnston.

Mr Haniyeh assured Mr Makepeace that he would do everything in his power to free Johnston and Mr Hamed was asked to head the negotiations with the kidnappers.

In May Mr Hamed was again invited to the UK and attended a Hay festival event that was also attended by Gordon Brown, then chancellor. The two did not speak.

Johnston was freed on July 4 after Hamas surrounded the compound of the Dogmush family, the kidnappers.

David Miliband, the foreign secretary, thanked Hamas for its help in freeing the BBC correspondent. Mr Haniyeh said he was pleased with the respect and gratitude shown by the British government and organisations for Hamas's assistance.

"The deputy consul came to thank me personally and the consul general and the foreign minister thanked us in press conferences that were broadcast all over the world.

"In addition we have received thanks from the Johnston family, British NGOs and the British media. They have shown us a lot of respect," he said. "In addition, 20 members of the British parliament signed a motion to renew contacts with Hamas."

Mr Haniyeh said that Hamas intended to enforce law and order in Gaza but admitted that the kidnappers of Johnston, who also kidnapped two journalists from Fox TV in Gaza last year, remained free.

"But they are being watched closely and are subject to other controls which I can't tell you," he said.

He said that Hamas would not change its policy of refusing to recognise Israel and said that the Palestine Liberation Organisation's recognition of Israel 15 years ago had not led to any improvement in the rights of Palestinians.

"In return for recognition, the PLO got the opposite of what they wanted. They got the expansion of the settlements, the confiscation of the Jordan valley and the wall. The problem is therefore not one of recognition but something else," he said.

Guardian