He said Palestinians and Israelis are destined to live side by side.
Abbas also condemned the attack on a Gaza border crossing that killed six Israelis on 13 January, as well as recent Israeli killings of Palestinians.
Israeli Prime Minister Ariel Sharon announced his decision yesterday to cut ties with Abbas and the Palestinian leadership in the wake of this week's militant attack in Gaza.
Israel's decision is seen as a setback for peace efforts, as it appears to cancel any early meeting between Abbas and Sharon.
U.S. Secretary of State Colin Powell called on Abbas to bring what he called Palestinian "terrorists" under control. But Powell also said he hopes Sharon's decision is temporary.
(compiled from wire reports)
"Mideast: New Palestinian President Extends 'Hand Of Peace' To Israel"