Tony Blair has said that the establishment of an independent Palestinian state is essential for achieving Mideast peace.

In an interview with the Jerusalem-based Palestinian daily al-Quds, Mr Blair said the essence of the Palestinian cause and the establishment of an independent state 'are so important for the Middle East'.

He underlined that 'three major issues have to be implemented in order to guarantee success in establishing the independent Palestinian state.'

'First, there has to be a strong political understanding; second, the Palestinians should have their own plan for establishing the state and guaranteeing an economical prosperity,' said Mr Blair.

'The Palestinian state should not be only a piece of land,' he said, adding 'The future state should witness a series of developing projects in coordination between Israel and the Palestinian National Authority.'

Mr Blair said that he would work jointly and closely 'with the Quartet members to guarantee the needed finance for the projects'.

Talks between the Israeli and Palestinian negotiators have begun, to work on a joint declaration on starting negotiations on final status issues that would lead to the establishment of an independent Palestinian state.

Both will take the joint declaration to an international conference that will be held next month in the US. Israel and Palestine will head the conference, in which representatives of more than 30 Arab and foreign countries will participate.