Amid Gaza flare-up, Israel, Hamas seek prisoner releases

Officials gave conflicting reports on possible compromises.
GAZA CITY, Gaza Strip (AP) -- Israeli tanks and troops clashed with militants in eastern Gaza early Saturday, Palestinian security officials said, as Israel moved to broadened an incursion to force the release of a captured soldier.
The Israeli forces, including some 15 tanks, entered eastern Gaza near the Karni commercial crossing, moving along the border just a quarter mile from the densely populated Shajaiyeh neighborhood, according to the Palestinian witnesses.
A short while later, the Israeli air force fired missiles at a group of militants gathered at the outskirts of Shajaiyeh, injuring at least two people, Palestinian security and hospital officials said.
Shajaiyeh, just 2 miles from Gaza City, was the scene of a fierce battle between soldiers and militants in May 2003, when 14 gunmen were killed in just 12 hours of fighting.
Israel launched its Gaza offensive almost two weeks ago, after Palestinian militants carried out a brazen cross-border attack on a military outpost, capturing a 19-year-old Israeli soldier. The military campaign is meant to get Cpl. Gilad Shalit released, and carve out a temporary buffer zone to halt Palestinian rocket fire.
There was no immediate comment from the Israeli army and no word of any casualties in the fighting.
Israel sent conflicting signals Friday on whether it is prepared to swap Palestinian prisoners for a soldier whose capture by Palestinian militants has touched off a harsh military campaign.
Israel's public security minister, Avi Dichter, suggested Friday that Israel is ready to cut a deal that would fall short of a direct prisoner swap.
Dichter said Israel could free some Palestinian prisoners as a goodwill gesture after Shalit is released and Hamas stops rocket attacks on Israel.
If there is calm, "Israel will need to, after some time, release prisoners as a reciprocal gesture," Dichter said. "Israel knows how to do this. Israel has done this more than once in the past."
He was referring to previous prisoner swaps -- usually in deals that freed far more Palestinians than Israelis. Privately, Israeli officials have said they did not rule out talks in Shalit's case, either.
Moderate Palestinian President Mahmoud Abbas said he has won Israeli assurances that it would reciprocate for Shalit's release by freeing some prisoners, as well as Hamas politicians it has rounded up in recent days.
Varying statements
Officials close to Prime Minister Ehud Olmert later said Dichter's statement did not reflect the views of the government and that Israel insists on the soldier's unconditional release. However, the government did not issue a formal statement distancing itself from the minister.
Israel does not want to be seen as cutting a deal with Hamas militants, but also does not seem to have a way to free the soldier by force.
Hamas said Friday that Shalit, seized June 25, is alive and being treated well. It also urged Israel to negotiate. The Islamic militant group initially demanded the release of hundreds of prisoners, but then scaled back its demands, seeking freedom for some 150 female inmates and several dozen men serving long sentences.
The internal Israeli debate came as ground troops backed by tanks pursued militants in the streets of crowded Gaza towns, and aircraft struck northern Gaza.
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