DISEASE CHARACTERISTICS:

• Histologically confirmed hepatocellular carcinoma OR
• Diagnosis of hepatocellular carcinoma based on characteristic mass and alpha-fetoprotein greater than 500 in the setting of known cirrhosis or chronic hepatitis B or C

• Measurable disease

  • At least 20 mm in one dimension
• Not amenable to curative surgical resection

PATIENT CHARACTERISTICS:

Age:

• 18 and over

Performance status:

• ECOG 0-2

Life expectancy:

• Not specified

Hematopoietic:

• Absolute neutrophil count greater than 1,200/mm^3
• Hemoglobin at least 8.0 mg/dL
• Platelet count at least 25,000/mm^3

Hepatic:

• Bilirubin no greater than 5 mg/dL
• Liver function tests no greater than 5 times normal

Renal:

• Creatinine no greater than 1.5 mg/dL

Other:

• Not pregnant or nursing
• Negative pregnancy test

• Regardless of fertility status:

  • All women (unless they have undergone hysterectomy or have been amenorrheic or postmenopausal for at least 2 years) must use at least 1 highly active method of contraception AND 1 additional effective method of contraception at least 4 weeks before, during, and for at least 4 weeks after study
  • All men (even if they have undergone a successful vasectomy) must use effective barrier contraception during and for at least 4 weeks after study
• No other medical condition that would preclude study
• No other prior malignancy in past 5 years except curatively resected basal cell carcinoma of the skin or carcinoma in situ of the cervix

PRIOR CONCURRENT THERAPY:

Biologic therapy:

• No more than 1 prior biologic therapy regimen
• No prior interferon or thalidomide for hepatocellular cancer

Chemotherapy:

• No more than 1 prior chemotherapy regimen

Endocrine therapy:

• Not specified

Radiotherapy:

• Not specified

Surgery:

• See Disease Characteristics

Other:

• No concurrent barbiturates or alcohol