NEW YORK (BBC) -- Palestinian leader Mahmoud Abbas held further talks with U.S. Secretary of State Hillary Clinton on Saturday amid last-ditch efforts to keep newly-started Middle East peace talks alive.

Mr. Abbas has said talks will collapse unless Israel extends a moratorium on building in settlements in the West Bank.
Israel has refused, saying settlement building is not an impediment to talks.
U.S. President Barack Obama has called on Israel to extend its partial ban.
'No compromise'
The Middle East peace talks resumed in Washington in September after Mrs. Clinton persuaded the two sides back to the negotiating table after a 20-month hiatus.
Behind the scenes there has been intense activity at the UN all week, to try to overcome the obstacle some fear could kill off new negotiations between Israelis and Palestinians before they have even properly begun.
At issue is the Israeli partial freeze on building settlements in the occupied West Bank. The Palestinians say that unless it is extended, then the talks cannot go ahead.
Earlier in the week, U.S. President Barack Obama sketched out a bold vision of peace talks that within a year could pave the way for a fully fledged Palestinian state living in peace side by side with Israel. But in his interview with the BBC Persian service on Friday he admitted his confidence was limited.
Another official closely involved described the situation as 'difficult'. Diplomats talk of creative and stop gap ideas to try to get around the impasse. But so far, the Palestinian leader Mahmoud Abbas has been adamant that the moratorium must be extended.
His speech today at the UN may be a critical signal of where the fragile peace process is heading.
But with the moratorium due to expire on Sunday, and no sign of Israel extending it, the two sides have reached an impasse.
In an attempt to keep negotiations alive, Mrs. Clinton met Mr. Abbas in New York on Friday on the sidelines of the UN General Assembly.
The Palestinian leader emerged saying he would “have another meeting with Hillary tomorrow”.
Mr. Abbas has so far rejected any compromise that does not guarantee a “complete halt” to Israeli settlement activity in the West Bank.
“A total freeze must be maintained on settlement activity in the Palestinian territories, including in Jerusalem. We reject any partial solution,” his advisor Nabil Abu Rudeina told AFP news agency.
An Israeli government official told AFP news agency that Israel was prepared to “reach a compromise acceptable to all parties”.
But he stressed that “there cannot be zero construction” in West Bank settlements.
Jeffrey Feltman, the U.S. assistant secretary of state for Near East affairs, said Washington was taking a tough line toward both the Palestinians and Israelis.
“We are urging Israel to extend the moratorium. We are also making clear to the Palestinians we do not believe that it is in their interest to walk out of the talks.
“At this point, we are urging both sides to create the atmosphere that is most conducive to a successful conclusion to the negotiations.”
On Thursday, President Obama urged Israel to extend its moratorium, which he said had “made a difference on the ground, and improved the atmosphere for talks”.
“If an agreement is not reached, Palestinians will never know the pride and dignity that comes with their own state. Israelis will never know the certainty and security that comes with sovereign and stable neighbors who are committed to co-existence,” said Mr. Obama.
Photo: Palestinian Acting President Mahmoud Abbas (R) meets with U.S. Secretary of State Hillary Clinton (L) on September 24, 2010 in New York City. (Getty Images)
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