Prime Minister Junichiro Koizumi promised Palestinian ministers Friday that Japan will provide as much financial support as possible to help them overcome economic difficulties and continue efforts to reach peace with Israel.

During a meeting at the Prime Minister's Official Residence, Koizumi told Palestinian Foreign Minister Nabil Shaath and Finance Minister Salam Fayad that he hopes both Israel and Palestinians will maintain peace efforts.

The world will remain unstable as long as their conflict lasts, he added.

Shaath asked for continued and increased support from Japan, both politically and economically, Japanese officials said.

Koizumi said that, despite Japan's fiscal woes, Tokyo will do what it can to help the Palestinians economically because the global community wants Israel and Palestine to coexist peacefully, they said.

Koizumi told his guests that the only ones who do not share this wish are extremists who carry out terrorist activities, making it difficult for Japan to provide economic assistance.

Shaath told Koizumi that the Palestinian leaders also believe in the importance of eliminating terrorist activities and that such acts -- whether carried out by Palestinians or Israelis -- must be condemned, the officials said.