The PA daily reports that Abbas said this at a meeting with writers and journalists in the home of the Palestinian Ambassador to Jordan.I saw this on Friday and couldn't find the original article in Al Hayat al Jadida online, so I emailed PMW, who provided me with a facsimile of the print page, with the quote highlighted in yellow:
The following is the transcript from the official PA daily Al-Hayat Al-Jadida:
"'We don't accept the statement [of Hamas]: a [Palestinian] state of resistance and refusal. What we hear from everyone is that the basis is negotiations, at a time that the entire world agrees about this, despite the absence of other options, we either have negotiations or no negotiations, what has put Israel in the corner.
We are unable to confront Israel militarily, and this point was discussed at the Arab League Summit in March in Sirt (Libya). There I turned to the Arab States and I said: 'If you want war, and if all of you will fight Israel, we are in favor. But the Palestinians will not fight alone because they don't have the ability to do it.' He [Abbas] said: 'The West Bank was completely destroyed and we will not agree that it will be destroyed again,' in addition to 'the inability to confront Israel militarily.'"[Al-Hayat Al-Jadida (Fatah), July 6, 2010
Once again we see that peace is not a goal for even the "moderate" PA. The goal is to destroy Israel; peace (or, more accurately, the "peace process") is a strategy towards achieving that goal.
Somehow, I don't think that there will be any angry requests from the White House demanding that Abbas explain or disown his statements. They reserve those actions for things that are really heinous, like announcements of Jews building houses in their capital city.