Washington: President George W. Bush yesterday called for a Middle East peace conference later this year and pledged $190 million (about Dh697 million) in new aid to the government of Palestinian President Mahmoud Abbas.

Aiming to break years of stalemate, Bush called for a meeting between Israel, the Palestinian National Authority and their neighbours. He did not say where it would take place.

Reaffirming his vision of a Palestinian state at peace with Israel, Bush said Palestinians faced "a moment of choice" between the militant group Hamas and Abbas.

"This is a moment of clarity for all Palestinians. Now comes a moment of choice," Bush said in a White House speech. "The alternatives before the Palestinian people are stark."

After the violent takeover last month of the Gaza Strip by Hamas, Western countries had rallied behind Abbas with promises of renewed aid. Their hope is to isolate Hamas and to spur peace moves between Palestinian moderates and Israel.

The regional meeting would be led by US Secretary of State Condoleezza Rice. Bush said it would review progress on building Palestinian institutions.

"I will provide diplomatic support for the parties in their bilateral discussions so that we can move forward on a successful path to a Palestinian state," Bush said.