BUCHAREST -- U.S. Envoy Anthony Zinni's mission can calm the Middle East situation, but will not resolve the crisis, Lebanese Prime Minister Rafiq Hariri said Monday.

"I don't want to prejudge Mr. Zinni's mission, but I don't think it can succeed, unless Israel withdraws from the occupied territories," he said during a visit to Bucharest.

"As long as Israel insists on keeping its occupation, this mission can calm down the situation but not solve the problem," he told reporters.

His comments came as Zinni continued his efforts in the region, overseeing Monday high-level security talks between Israel and the Palestinians, the first such encounter between the two sides since an unprecedented wave of violence broke out nearly three weeks ago.

Hariri reiterated that: "We would like to see a Palestinian state with its capital in Bethlehem," Adding that the crisis could only be resolved by respecting all relevant UN Resolutions.

The Lebanese leader is currently on a three-day visit to Romania to strengthen links between the two countries, and has discussed a number of petrol and gas projects.

Romanian Prime Minister Adrian Nastase, meanwhile, lamented the "relatively low" levels of bilateral trade, which were worth some 30 million dollars (42 million euros) in 2001. Lebanese investment in Romania totaled 37 million dollars last year.

Meanwhile, the West Bank Leader of Yasser Arafat's Fatah Group said Monday that U.S. envoy Anthony Zinni was "standing by the Israelis" and that his cease-fire mission was "a waste of time."

"General Zinni is carrying Israeli demands in the name of the United States, he is standing by the Israelis and his mission will lead to failure," Marwan Barghuti told AFP.

"Any understanding or agreement that will not call for an end to occupation (of the West Bank and Gaza Strip) with a timetable and international guarantees will not stand," he added.

Barghuti also said "Discussing Tenet is a waste of time because the biggest fire is occupation itself and the Intifada and resistance will continue as long as occupation remains."

The Tenet understanding, named after U.S. CIA Director George Tenet, sets out a mechanism for implementing a cease-fire, after which the Mitchell Plan -- a blueprint for getting the peace process back on track -- can be put into effect.