RAMALLAH, August 29 (JMCC) - Palestinians will not formally request statehood recognition from the United Nations next month, Foreign Minister Riyad Malki told the Associated Press Tuesday.

The move indicates that Palestinians are acquiescing to the wishes of the United States, which seeks to avoid major diplomatic moves before the US presidential elections in November.

Foreign Minister Riad Malki says President Mahmoud Abbas has decided not to apply at the General Assembly session next month, although he will informally appeal for recognition in a speech.

Palestinian President Mahmoud Abbas requested last fall that the UN Security Council approve the membership of Palestine, in a bid to move the peace process away from the oversight of the United States. The petition died in committee, however, as the council split over recognizing Palestine as a state.

Israel temporarily halted the transfer of critical tax revenues to the Palestinian Authority that Abbas heads. The interim government continues to suffer a financial crisis as donors fail to come through with promised funds.

Talks with Israel have been stalled for two years over Israel's continued construction of settlements in the occupied West Bank.