Egypt trying to set up Israeli-Palestinian talks

SHARM EL-SHEIKH, Egypt, Jan 4 (Reuters) Egypt is trying to set up another meeting between Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas, the Egyptian presidential spokesman said today.

Egyptian President Hosni Mubarak was holding talks with Olmert in the Egyptian resort of Sharm el-Sheikh today.

''The meetings aim to prepare the atmosphere to hold a meeting featuring Abu Mazen (Abbas) and Olmert similar to the one held previously in Sharm el-Sheikh,'' spokesman Suleiman Awad told reporters.

Egypt organised a similar meeting in Sharm el-Sheikh in February 2005, when Ariel Sharon was Israeli prime minister.

Olmert and Mubarak were expected to discuss an Israeli-Palestinian prisoner exchange, Palestinian efforts to form a national unity government and the prospects for reviving direct Israel-Palestinian talks on a peace settlement.

But Egypt did not want the meeting to focus exclusively on the fate of Israeli soldier Gilad Shalit, who was captured on the border with Gaza in June, an Egyptian official said.

The Palestinians have been trying to exchange Shalit for more than 1,000 Palestinians held in Israeli jails.

Abbas and Olmert met on December 23 and agreed to try to revive peace negotiations that collapsed in 2001.

But in the recent flurry of high-level diplomacy, mediators have not presented any specific proposals to resolve the fundamental disputes over borders and refugees.

Reuters DKA GC1743