JERUSALEM, Dec 23 (Reuters) - Israeli Prime Minister Ehud Olmert began long-awaited talks with Palestinian President Mahmoud Abbas in Jerusalem on Saturday, their first formal meeting since the Israeli leader assumed office a year ago.

The talks started around 7.30 p.m. (1730 GMT). The two leaders were not expected to hold a news conference at the end of their meeting, but release a statement instead, officials said.

News of the meeting was announced only hours before it started. Officials on both sides had said Olmert and the moderate Abbas had been expected to meet before the end of the month.

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