Angela Merkel and Hosni Mubarak discuss security and Palestinians in second round of talks

Merkel said that in addition to bilateral relations, the talks focused on the situation in the Palestinian territories, underlining the need to maintain funds to help the Palestinian people, while insisting that the newly elected Hamas government recognize Israel.

The chancellor said she also briefed Mubarak on her discussions with U.S. President George W. Bush in Washington last week regarding tension over Iran's nuclear program.

"We agreed that all diplomatic efforts must be made in order to find a diplomatic solution," Merkel said.

Mubarak, who was in Berlin to open an exhibit on Egyptian art, said the two discussed "many problems," including the need for increased efforts to fight terrorism on an international level.

Merkel and Mubarak held their first meeting on March 11 during trip to Berlin by the Egyptian leader, at which time Mubarak was invited back to open the art exhibit.

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