BEIRUT, Lebanon - The United States urged Prime Minister-designate Fouad Siniora on Friday to quickly form Lebanon's first government since Syrian troops withdrew from the country and to push for wide-ranging reforms.

The announcement of the new government has been delayed by demands and counter-demands over cabinet portfolios from Siniora's anti-Syrian friends and powerful allies of Damascus.

"We look forward to the chance to work with and support the new Lebanese government when it is formed and we hope it will be formed quickly so this process can move forward," U.S. Deputy Assistant Secretary of State Elizabeth Dibble told reporters during a visit to Beirut.

A key stumbling block facing the formation of the government is a demand by a Shi'ite Muslim alliance loyal to Syria that the foreign minister be a Shi'ite.

Hizbollah group, which swept the Shi'ite Muslim vote in last month's elections to win 14 parliament seats, has chosen to join the cabinet for the first time and asked Siniora for two ministerial posts.

Siniora, a Sunni who has promised to reach out to all Lebanese political factions, has agreed to this, but wants to give the portfolio to former foreign minister Fouad Boutrous, a Christian.

The Foreign Ministry, currently run by a Shi'ite, is seen crucial since it is expected to play an important role in shaping ties with Damascus after Syrian troops ended their 29-year military presence in Lebanon in April.

It also oversees ties with the United Nations over implementing a Security Council resolution demanding the disarming of Hizbollah guerrillas.

Political sources said Siniora had reestablished contacts with Christian leader Michel Aoun, a long-time critic of Damascus who had turned down an offer to join the government after his demands for the Justice Ministry were rejected.

Aoun leads a 21-member bloc in parliament, where groups opposed to Syria's influence are in a majority.

International assistance

Dibble, who met political leaders but not pro-Syrian President Emile Lahoud, said the international community was ready to assist Siniora in his efforts to implement reforms, which she said "would include economic reforms, judicial reforms, the electoral law reform".

Lebanon is saddled with a $36 billion debt. Its electoral law was drawn up under Syrian tutelage to give its allies an advantage in polls.

Asked how Washington would react to having Hizbollah join the new cabinet, Dibble said the Lebanese government was a Lebanese issue but added:

"It is our hope that the government that is formed is one we can work with." Washington brands Hizbollah a terrorist group.

Palestinian President Mahmoud Abbas, also visiting Beirut, said Palestinians living in refugee camps in Lebanon would abide by Beirut's implementation of U.N. Security Council resolution 1559, which calls for the disarmament of all groups.

"Resolution 1559 concerns the Lebanese government and the Lebanese people," Abbas told reporters. "We are guests in Lebanon, temporary guests, and the Lebanese law applies to us as it applies to anyone on this soil."

Lebanon was plunged into its worst crisis since the 1975-1990 civil war with the Feb. 14 assassination of former Prime Minister Rafik al-Hariri. His killing has been followed by a series of killings and bomb attacks in and around Beirut. (Reuters)