‘Tony Blair was told by the United States yesterday that he had no authority to tackle political negotiations between the Israelis and Palestinians as he spent his first full day as special envoy to the Middle East.

Condoleezza Rice, the US secretary of state, insisted that America would retain leadership of the "political track" while Mr Blair would work on raising funds for the Palestinians, as well as building their economy and infrastructure.

It was the clearest account yet of the former prime minister's role in the Middle East on behalf of the international Quartet - the European Union, United Nations, the United States and Russia. He will be more an envoy to the Palestinians than a peace envoy.

While she couched her comments amid lavish praise for Mr Blair, it amounted to a diplomatic snub after his representatives had earlier made clear he wanted to play a key role in peace negotiations.’

US To Keep Blair Out Of Middle East