The Israeli government has offered to start direct peace talks with Lebanon, saying all issues would be negotiable, including the disputed Shaba Farms which have been held by Israel since the 1967 Six Day War. Lebanese prime minister Fuad Siniora immediately rejected Israel's call for direct, bilateral talks: "Lebanon's known position is that there is no place for bilateral negotiations between Lebanon and Israel," his press office said in a statement. Hezbollah legislator Nawar al-Saheli told the Associated Press news agency that the Israeli offer was "ridiculous propaganda."
However, the United States government has begun mediating between Israel and Lebanon in an effort to resolve their dispute over Shaba Farms. The small piece of land, located on the border between the Golan Heights and Lebanon, was omitted from Israel's May 2000 withdrawal from Lebanon because the UN Security Council said it was Syrian territory, not Lebanese. European diplomats told the 'Ha'aretz' newspaper that they expect Israel to withdraw from Shaba should the UN indeed declare it Lebanese.
A Lebanese official was quoted by media as saying that a prisoner swap between Israel and Hezbollah guerrillas was imminent. "Barring any last-minute obstacles we expect very soon Israel to return seven to 10 prisoners and the bodies of 10 Hezbollah fighters," an official told the AFP news agency on condition of anonymity. He said the swap could take place in Germany, which has been acting as mediator between Israel and Hezbollah.
Meanwhile, a ceasefire between Israel and the Palestinian militant group Hamas began on Thursday morning. Israel and Hamas halted fighting in the Gaza Strip, but both sides voiced doubt over how long the Egyptian-brokered ceasefire might hold. Only hours before, dozens of short-range Palestinian rockets and mortar bombs had hit southern Israel. Israeli air strikes hurt several radical Palestinian gunmen. "What they are calling a 'calm' is fragile and likely to be short-lived," Israeli prime minister Ehud Olmert said in a speech near Tel Aviv.
