OLMERT COOL TO HAMAS' PRISONER EXCHANGE LIST

ACCORDING TO OLMERT, EXCHANGING 1400 HUNDRED TERRORISTS FOR 1 SOLDIER IS ACCEPTABLE. HE'S NOT WORRIED THAT THIS WILL ENCOURAGE MORE KIDNAPPING OF ISRAELI IN THE FUTURE. OLMERT JUST HAS RESERVATIONS ABOUT SOME OF THE MORE BLOOD-SOAKED TERRORISTS ON THE LIST.

YOU MAY RECALL THAT ISRAEL WENT TO WAR LAST SUMMER RATHER THAN SUBMIT THIS THIS TYPE OF BLACKMAIL. NOW OLMERT APPEARS READY TO CAVE IN.

Hamas: Prisoner deal 'doomed to fail' according to Israeli terms (Haaretz)
Hamas said Wednesday that a prisoner swap deal for the release of captured Israel Defense Forces soldier Gilad Shalit was "doomed to fail," if Israel demanded that militants with "blood on their hands" be dropped from the Palestinians' list.

"The Palestinians will not revise the list based on Israeli criteria," Palestinian cabinet spokesman Ghazi Hamad said, though he did add, "If there are issues that [need] more negotiations, then things are not over yet."

According to Hamas, Israel's reaction "proves [it] is not interested in achieving a compromise over the release of prisoners."

An announcement released by the Prime Minister's Office on Tuesday stated that during a security consultation "disappointment and reservations were expressed over the list of prisoners whose release Hamas is seeking. Israel will continue contacts with Egypt on the issue." Defense establishment sources said that Hamas' list of prisoners "appears unacceptable" due to the inclusion of senior terrorists convicted of the murder of Israelis.

The statement said Prime Minister Ehud Olmert convened a meeting of senior officials and intelligence commanders Tuesday afternoon to discuss the list, and expressed disappointment and reservations. It also said there has been some progress in negotiations, but the road to completion is still long.

Olmert imposed a blackout on the contents of the discussion itself among the highest ranks of the Defense Ministry. The announcement further stated: "Our hearts are with the Shalit family, which has been steadfast in recent months especially in the face of recent reports on this issue, which certainly do not lessen its continued suffering."

At this point, it appears the sides are close to agreement on the stages of the deal and the number of prisoners - probably 1,400. However, the actual composition of the list is expected to be a key obstacle that could take several more weeks.