The militants say the agreement requires the government to release 5000 prisoners before talks begin.

Two sources briefed on the talks say the agreement is still on track to be finalized.

But analysts say the agreement may have little chance of bringing immediate peace to the southern Mindanao region.

They now say the agreement has expired and they are demanding extra payment to continue working the new system.

He'll have been wanting to be able to go to Caroline and Family and say the agreement wasn't working.'

The two parties say the agreement will encourage people-to-people contact, boost tourism, and invigorate business between the EU and Tuvalu.

He was offered several thousand dollars and they produced a contract to sign to say the agreement was confidential, he said.

Critics say the agreement with Hamas is not only a concession to terrorists but will encourage the Palestinians to abduct more soldiers.

The UK Treasury said the agreement needs to be ratified by Parliament.

The Justice Department also said the agreement appeared to violate the law.

Germany, for one, said the agreement lacked clarity on Greece's policy direction.

He said the agreement would ensure its preservation for generations to come.

Other delegates expressed disappointed, but said the agreement could be built upon.

Business New Zealand chief executive Phil O'Reilly said the agreement offered new opportunities.

Our correspondent said the agreement comes amid reports of a possible cabinet reshuffle.

Mr Reid said the agreement would benefit British and Saudi industry.