Inclusion Criteria

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

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

Other:

- No concurrent barbiturates or alcohol