Hamas leader discusses prisoner exchange in Cairo

DAMASCUS, Nov 23 (Reuters) Hamas leader Khaled Meshaal today held ''positive'' talks with a senior Egyptian security official on Thursday to discuss a prisoner exchange between the Palestinian movement and Israel, a senior Hamas member said.

Egypt has been trying to broker the prisoner swap since the capture of an Israeli soldier in a raid near Gaza in June involving Hamas' military wing.

Meshaal, who arrived to Cairo overnight along with two politburo members of Hamas, met Egyptian intelligence chief Omar Suleiman, Izzat al-Rishq told Reuters.

''The delegation ... will follow up on Egyptian efforts to reach a deal acceptable to the Palestinian people,'' he said.

''The atmosphere is positive,'' he told Reuters in the Syrian capital.

Hamas had demanded the release of up to 1,000 Palestinian prisoners in exchange for the soldier.

Rishq said Meshaal will also discuss obstacles preventing the formation of a Palestinian unity government.

Earlier this week Palestinian Prime Minister Ismail Haniyeh said the participation of his Hamas group in a unity government hinged on winning guarantees of a resumption of Western financial aid, suspended after Hamas came to power in March.

The Hamas delegation will discuss ''practical measures to lift the sanctions'' on the Palestinians, said Rishq, who is a member of Hamas' politburo.

''We want to inform our brothers in Egypt about the latest developments on the proposed unity government, and the difficulties facing its formation,'' he said.

Reuters SBA VP0120