Do not negotiate or release as this will only make more attacks likely. Inform the Arabs they are "renting" Shalit at $50,000,000 a month, the amount in duties being held, and quietly inform their leadership that if any harm comes to him they and their families will pay directly.
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Somalia: 11 soldiers killed as extremists retake town in country's south (AP)
from the article: Prisoner swap / Release them in stages