Prime Minister Ehud Olmert said Monday he was open to a reasonable exchange of Palestinian prisoners in return for captured Israel Defense Forces soldier Gilad Shalit, but he said the Palestinians' demands are too high.

In an interview with Canadian Broadcasting Corp. TV, Olmert also said Israel is ready to meet Saudi Arabia over its 2002 peace initiative, calling on the Saudis to take the lead in fighting extremism in the Arab world.

The interview was to be broadcast later Monday in Canada.

	Advertisement

On the prisoner issue, Olmert declined to say how many Palestinians that Israel would be willing to exchange for Shalit, 20, abducted last June after Hamas-linked militants tunneled under the Israel-Gaza border and attacked an IDF base, killing two other soldiers.

Olmert earlier expressed disappointment with the list of prisoners Israel recently received from Shalit's captors, but had neither rejected it outright nor signaled a willingness to exchange large numbers of prisoners for Shalit.

Olmert said a reasonable exchange by Middle Eastern standards likely would involve more prisoners than European or North American governments would release for one captured soldier.

In the past, Israel has released hundreds of Palestinian prisoners in return for small numbers of its citizens.

Israeli currently holds 9,221 Palestinian prisoners, according to the Prisons Authority. Many are held on security offenses, ranging from stone-throwing to plotting suicide bombings.

Olmert has said the release of the soldier remains an obstacle to progress in peace talks with the Palestinians.

Still, Olmert said Israel was willing to talk directly with Saudi Arabia over its initiative, recently reaffirmed by the 22-member Arab League at a March meeting in Riyadh.

Meanwhile, Egyptian President Hosni Mubarak said Monday in Paris there will be no normalization of relations between Israel and Arab countries without peace in the Middle East.

The proposal offers normal relations to Israel in exchange for its withdrawal to pre-1967 borders, a Palestinian state with a capital in east Jerusalem and a mutually agreed upon resolution over Palestinian refugees. Israel captured the West Bank, Gaza Strip and Golan Heights in the 1967 Six-Day War.

Olmert hinted that Israel and Saudi Arabia might already have spoken through third parties, saying, "There are ways of passing messages when you don't have formal contacts."

He described Saudi Arabia as a key to progress in the Middle East, saying it must play a central role in resolving the Israeli-Palestinian conflict.

He also called on the Saudis to take the lead against Islamic radicalism.

"The time has come for the moderate forces in the Arab world to make a statement of courage and of leadership that will send a message across the Middle East that the days of the extremists are over, and the Saudis can play a major vital role in this direction," Olmert said, pounding the table.

Olmert said Israel would not renew peace talks with Syria until it was seriously and genuinely committed to ending support for Hezbollah, Hamas and insurgents in Iraq.