Israel says Hamas hardens stance on prisoner swap, talks suspended

Palestinian sources on Tuesday told the pan-Arab daily Al Hayat that negotiations for the release of Shalit were discontinued due to Hamas's insistence on freeing all 450 prisoners on the list it presented to Israel, the Jerusalem Post reported on its website.

According to the sources, which the paper termed "reliable", the figure behind Hamas's hardened position was the organization's military chief, Ahmed Jabri, who had led the Hamas delegation to Egypt.

Egyptian sources told the paper that the Israeli envoys in the talks have said that Israel's best offer had been put forward and that anything further required an executive decision on the part of the government.

Israeli Security Agency Director Yuval Diskin and Olmert's special envoy, Ofer Dekel, had been taking part in Egyptian-mediated talks in Cairo regarding the release of Shalit.

HOPES DASHED

Rumors began to spread over the weekend that there could be a breakthrough in the talks, but those hopes appear to have been dashed in light of the statement from the prime minister's office.

Palestinian militants, including some linked to Hamas, crossed into Israel from Gaza on June 25, 2006, and kidnapped Shalit, who was 19. Talks for his release have started and stalled many times.

Olmert's comments Monday signaled the talks had not reached a deal and came as two Israeli envoys returned home from Egypt.

"According to briefings on the discussions in Cairo, it turns out that Hamas has hardened its stance ... and presented extremist demands, despite the generous (Israeli) propositions that were made," a statement from Olmert’s office said.

He will present full details to a cabinet meeting on Tuesday, according to the statement.

Israel refuses to have any direct dealings with Hamas, which it boycotts as a terrorist organization, a stance also held by the European Union and the United States.

Hamas wants the release to coincide with an exchange of hundreds of Palestinian prisoners in Israeli jails, including some convicted of attacks against Israelis in what would mark a major change in Israeli government policy.