Olmert: Israel Can't Meet Inmate Demand

Israeli Prime Minister Ehud Olmert pauses during a statement in his Jerusalem offices on Wednesday, April 18, 2007. Speaking at the Foreign Affairs and Defense Committee Olmert on Wednesday said that the list of prisoners the Palestinians want freed in exchange for a captured Israeli soldier "creates expectations we cannot meet" a person at the meeting said.(AP Photo/Jim Hollander, Pool) (Jim Hollander - AP)

Although Shalit's captivity has hindered attempts to get peace talks rolling again, Israel has promised to ease restrictions on the Palestinians in an effort to lessen tensions.

On Wednesday, Olmert and Palestinian officials both said operations at the vital Karni cargo crossing had been extended by at least five hours a day for a trial period _ something that could boost the battered Gaza economy.

Israel has frequently closed the passage over the past year, citing security concerns. Palestinians say the frequent closures, which have taken a heavy toll on the Gaza economy, are punishment for the victory of the Hamas militant group in Palestinian elections last year and Shalit's capture.

In other regional developments, Olmert reiterated to the Foreign Affairs and Defense Committee that Israel had no plans to launch a military strike against Syria, the meeting participant said _ an apparent attempt to ease fears in Damascus.

"We have no intention of attacking Syria," the participant cited the prime minister as saying.

Olmert said Israeli intelligence officials think Syria has recently redeployed troops fearing that Israel is planning an attack _ and not because it is preparing to launch a war, the meeting participant said.

Syria has expressed interest in renewing peace talks with Israel, but Olmert has rejected the overtures, saying Damascus must first end its support for Lebanese and Palestinian militants who attack Israel.

The latest round of peace talks between Israel and Syria broke down in 2000.