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Israel plays down Gaza deal reports

A Palestinian protester uses a sling to hurl stones at Israeli soldiers during a protest against the controversial Israeli barrier in the West Bank village of Bilin near Ramallah June 26, 2008. REUTERS

JERUSALEM, Friday

Israeli officials played down reports today that a deal was close with Hamas that would include the release of an Israeli soldier held captive in the Gaza Strip in exchange for Palestinians held in Israeli jails.

Israeli and Palestinian political sources and Western diplomats confirmed, however, that Egyptian mediators were still working on a package of measures that could combine exchanges of prisoners, ceasefire agreements, an easing of Israel’s blockade on Gaza and rapprochement between rival Palestinian factions.

Ease a schism

A July 7 deadline set by Egypt for Islamist Hamas and the Fatah faction of Palestinian President Mahmoud Abbas to ease a schism that has divided Gaza from the West Bank, as well as this week’s third anniversary of Hamas’s capture of Israeli soldier Gilad Shalit, has fuelled speculation of a deal.

Responding to Israeli press reports citing European diplomats that Shalit was about to be sent to Egypt, Israeli officials and European diplomats in the region said today they knew of no new concrete developments in negotiations.

Hamas officials have also played down earlier reports.

The family of Shalit, who also has French citizenship, has stepped up pressure on new Israeli Prime Minister Benjamin Netanyahu to reach a deal. The government has long baulked at Hamas’s price for Shalit’s release, notably the freeing of leading Hamas militants who attacked Israelis.

Netanyahu is also under pressure from the United States and its European allies to ease a blockade on Hamas-ruled Gaza that has prevented billions of dollars in foreign reconstruction aid from reaching the enclave since Israel’s offensive in January.

Israel, which is also under US pressure to renew peace talks with Abbas, has tied the blockade to the fate of Shalit. An Israeli government official said Netanyahu wanted pressure put on Hamas, not Israel.

Hamas, which seized control of Gaza two years ago in fighting with Fatah-led forces, is keen to bolster its support among the 1.5 million Gazans by improving supplies. (Reuters)