Hamas official: We expect deal on Shalit soon

Prisoner exchange deal in the horizon? A Hamas official on Sunday claimed progress in contacts for a deal to free a captured Israeli soldier, and reports said Israel would free about 450 Palestinian prisoners, but both sides said nothing was final.

Hamas-linked gunmen captured the soldier, Corporal Gilad Shalit, in a cross-border raid on an Israeli army post on June 25. Two other soldiers were killed. The raid set off five months of violence in Gaza, and with the soldier in captivity, Israel has refused to discuss other outstanding issues with the Palestinians.

Earlier, Hamas' military wing said there has been “a breakthrough” in talks on freeing Shalit. 

Israeli media said in the first stage, Hamas would provide a video recording showing that the soldier is alive - the first such indication since the capture - and Israel would free a small number of prisoners.

Then, according to the reports, Israel would release 450 prisoners in exchange for the soldier, who would be handed over to Egyptian officials and transferred to Israel. Egypt has been mediating between Israel and Hamas.

A main sticking point would be the reported Hamas insistence on picking the prisoners to be freed, among some 8,000 held by Israel. With few exceptions, Israel has refused to free Palestinians who played active parts in attacks that killed Israelis.

Some media reports said there would be a third phase in which Israel would release additional prisoners. Hamas spokesman Ismail Radwan told Associated Press Television that there has been progress in the contacts.

"We expect a declaration of a complete deal of releasing Palestinian prisoners for the imprisoned Zionist soldier soon. But this all depends on the Israeli side," he said. "We hope that the results of this deal will be soon, God willing."

However, Israeli officials denied that there was significant progress toward an exchange. They also said no videotape of the soldier has been delivered. The officials spoke on condition of anonymity because of the sensitivity of the subject.

Israel refuses to deal directly with Hamas, which it considers a terrorist organization because of its record of dozens of suicide bombing attacks over the last decade, killing hundreds.

'Don't interfere with Egyptians' work'

Also, Palestinian negotiator Saeb Erekat, who is close to moderate President Mahmoud Abbas, denied the report of a breakthrough. "I wouldn't say that no progress has been made at all, but the deal is still far away," He told the AP, counseling patience.

"They are still far away from reaching an exact number of prisoners, and we urge everybody not to interfere with the Egyptians' work."

In the six months since the soldier was captured, there have been numerous claims of progress and breakthroughs in contacts toward a prisoner exchange, but none have panned out.

Israel has trying to boost Abbas in his bloody power struggle with the Islamic Hamas, which won a parliamentary election a year ago and formed a government. Since prisoners are high on the Palestinian agenda, it was thought that releasing some to Abbas would build his prestige.

However, after signaling that he might free some prisoners as a gesture for the current Muslim holiday, "Feast of the Sacrifice," Prime Minister Ehud Olmert decided against a release, insisting that the soldier must be freed first.

Olmert and Abbas had a summit meeting this month, the first of its kind since last year. On Sunday, Israel carried out one of its pledges from the summit, transferring NIS 50 million (USD 11.8 million) to hospitals in the Arab section of Jerusalem, government spokeswoman Miri Eisin said.

However, promised streamlining of checkpoints was not in evidence Sunday. Long lines of people were waiting at the Qalandia crossing from the northern West Bank into Jerusalem, some wearing their best clothes for holiday family visits.

By sundown, no rockets had been fired from Gaza at Israel on Sunday, a rare pause - possibly because of heavy rainfall.