Israeli Minister: 'We are ready to pay terrible price for Gilad Shalit'

As Israel and Egypt coordinate efforts to clamp down on Hamas' smuggling operation in Gaza, senior officials in Jerusalem say that Israel has softened its positions ahead of a possible prisoner exchange deal with Hamas for the retrieval of Gilad Shalit.

Haaretz has learned from several cabinet ministers that Prime Minister Ehud Olmert and other ministers who had refused Hamas' demands for Shalit's release have recently "realized that there is no choice but to pay the price," as one minister put it.

By contrast, over the past few months Olmert has said that Israel should not meet Hamas' demands for the release of hundreds of Palestinian prisoners held in Israel - many of whom were involved in terrorist attacks that claimed the lives of Israelis - in exchange for Shalit. Hamas has also demanded the opening of the crossings to the Gaza Strip in exchange for the kidnapped soldier. On Wednesday Olmert met with Defense Minister Ehud Barak and Foreign Minister Tzipi Livni to discuss the efforts to release Shalit, whom Hamas abducted in June 2006 from a military post overlooking the Gaza Strip.

One minister, who is also a member of the security cabinet, said Wednesday that the defense establishment is of the opinion that Operation Cast Lead has improved the chances of a deal for Shalit's release. "There is a solid majority in the cabinet supporting the release of many murderers for Shalit's release," he said.

The minister went on to explain that "Shalit is the subject of a consensus both in the government and the general public, and we will be able to pay the most awful price for his release."

Amos Gilad, the head of the Defense Ministry's political-security branch, is expected to raise the issue when he arrives on Thursday in Cairo for talks with the Egyptians on the security situation following the Gaza invasion. Gilad is expected to say that Israel would not open the crossings except for humanitarian needs until negotiations for Shalit's release are resumed. While refraining from directly negotiating with Hamas, Israel has in past talks used Egypt as a broker.

Israel and Egypt are also expected to form a joint committee to deal with arms smuggling into the Gaza Strip. According to a government official, the Israeli delegation to the committee will comprise representatives from the defense establishment and the intelligence community who will try to coordinate a work program to prevent smuggling, while exchanging information about the phenomenon. "Egypt has come to realize that it has no choice but to address the smuggling," the official said. The committee will probably include an American representative and possibly another delegate from the European Union.

According to the London-based newspaper Al-Hayat, Egypt is at present negotiating with Israel over the possibility of doubling the number of troops deployed along the border with Gaza, bringing it up to 1,500 troops.