Olmert offers hope of Middle East peace talks

ISRAEL: Israel is willing to release a large number of Palestinian prisoners if an Israeli soldier being held captive by militants…

ISRAEL:Israel is willing to release a large number of Palestinian prisoners if an Israeli soldier being held captive by militants in the Gaza Strip is set free, the prime minister, Ehud Olmert, said yesterday. He also said he was ready to agree to the evacuation of many settlements as part of a peace agreement with the Palestinians.

"I hereby declare that when [ abducted soldier Cpl] Gilad Shalit is released and returned to his family safe and sound, the government of Israel will be willing to release numerous Palestinian prisoners - including ones who were sentenced to lengthy prison terms," Mr Olmert said in a major policy address delivered at the annual memorial ceremony for David Ben-Gurion, Israel's first prime minister. It is the first time the Israeli leader has publicly and explicitly agreed to release prisoners in exchange for Cpl Shalit.

The prime minister's speech came the day after Israel and the Palestinians agreed to a truce in Gaza. A few hours after Mr Olmert's address, militants in Gaza associated with Palestinian president Mahmoud Abbas's Fatah faction, fired two rockets into Israel.

The attack followed the killing earlier yesterday of two Palestinians by Israeli troops in the West Bank where the sides are still trying to agree to a truce. Israeli officials have said it will take a few days to judge whether the truce has fully taken effect.

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Mr Olmert said that "in exchange for true peace", Israel would "agree to the evacuation of many territories and communities . . ." But a meeting with Mr Abbas and subsequent peace talks depended on the formation of a Palestinian national unity government that recognised Israel, was ready to abide by all interim peace agreements, and renounce violence.

Since the Hamas-led government, which has refused to accept these terms, was formed earlier this year, the Palestinians have faced crippling sanctions as western countries cut off hundreds of millions of dollars in aid.

If attacks on Israel ceased, Mr Olmert said, his government would also agree to a series of humanitarian measures, including reducing the number of roadblocks in the West Bank that severely restrict Palestinian movement, and releasing tens of millions of dollars in customs duties Israel collects on behalf of the authority and which it has frozen since Hamas got to power.

Hamas leaders were unmoved by the speech, with one saying the Islamic movement would not succumb to "conditions that contradict the rights of our people". EU leaders latched on to the truce and Israel's readiness to release prisoners as a sign of hope for renewed dialogue. "Let's hope we can get as much as possible from the ceasefire, then the release of prisoners, then a meeting of Olmert and Abbas," said foreign policy chief Javier Solana.