Israel rejects deadline to release 1,000 prisoners

MIDDLE EAST: Palestinian militants who kidnapped an Israeli soldier and are holding him captive in the Gaza Strip yesterday …

MIDDLE EAST: Palestinian militants who kidnapped an Israeli soldier and are holding him captive in the Gaza Strip yesterday gave Israel until 6am today (4am Irish time) to meet their demand to release over 1,000 Palestinian prisoners, threatening that if Israel did not respond they would regard the matter as "closed".

Israeli prime minister Ehud Olmert rejected the ultimatum and Israeli ministers warned of dire consequences if the soldier, Cpl Gilad Shalit (19), was harmed.

"If the enemy does not agree to our humanitarian demands . . . we will regard this case closed," read a communique released by the Hamas military wing and two other groups holding Cpl Shalit.

If the demands were not met, it continued, "the enemy will bear full responsibility for future consequences".

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The militant groups did not spell out what the consequences might be and a member of one of the factions holding the soldier, the Popular Resistance Committees, said last night that another announcement would be made at 6am. All options, he said, were open.

A spokesman for the Hamas government, Ghazi Hamad, said the ultimatum was "a message to Israel" that if it continued "every day to kill and target and attack, it won't get the soldier, alive or dead".

In a statement released by his office, Mr Olmert said his government would "not surrender to the extortion of the Palestinian Authority and the Hamas government, which are led by murderous terrorist organisations".

"We will not conduct any negotiations on a prisoner release," the statement read. "The Palestinian Authority bears full responsibility for the well-being of Gilad Shalit and his return safe and sound to Israel."

Israeli justice minister Haim Ramon warned of "far, far worse" military strikes if "God forbid, they should hurt the soldier".

There has been no sign of life from Cpl Shalit since he was captured in a raid by Palestinian militants on an Israeli army post on June 25th. But Israeli officials believe he is alive and is being held somewhere in southern Gaza.

Israeli defence minister Amir Peretz, meanwhile, again pointed the finger of blame at Damascus, where Khaled Meshal, the most senior Hamas figure outside of the territories, resides.

Israel has accused Mr Meshal of ordering the raid in which Cpl Shalit was kidnapped and two soldiers were killed.

"I suggest that [ Syrian president] Bashar Assad, who is trying to operate with his eyes shut tight, open his eyes, because he is responsible," Mr Peretz said.

Israeli forces, who have been operating in southern Gaza, yesterday also pushed into the northern part of the Strip, with tanks and army bulldozers employed in what the army said was a search for tunnel networks and explosives. Two militants were killed by Israeli forces during the incursion.