Israel releases prisoners but continues building settlement

Israel today approved the release of hundreds of Palestinian prisoners and promised not to build new settlements in the West Bank as a prelude to vital peace talks.

However, the government stopped short of American demands to halt construction in existing settlements.

Israel announced the moves ahead of a meeting between Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas. The two men were trying to break a deadlock in preparations for the summit, expected to take place next week in Annapolis, Maryland.

Israel sees the conference primarily as a ceremonial launching pad for new peace efforts, while the Palestinians want a more detailed plan for how post-conference talks will proceed.

Seeking to drum up support for the conference, Mr Olmert is heading to Egypt tomorrow for talks with President Hosni Mubarak.

With the outcome of Annapolis uncertain, Israel has been under American pressure to take steps to boost Mr Abbas’ standing among his people, including a settlement freeze and a large-scale release of Palestinian prisoners.

Mr Olmert said Israel would not build any more settlements in the West Bank: “Let’s be straight, we committed ourselves in the road map not to build new settlements and we will not build any.”

Israel has built no new authorised settlements in nearly a decade. But it has continued to rapidly expand existing settlements to accommodate what it calls “natural growth.”

Palestinian officials reacted coolly to the announcement. “Either it’s a 100 per cent settlement freeze or no settlement freeze. There is nothing in the middle,” said negotiator Saeb Erekat.

The Israeli cabinet overwhelmingly approved Mr Olmert’s proposal to release 441 Palestinian prisoners.

Although the largest in years, it falls short of demands to free some 2,000 prisoners. Israel holds an estimated 9,000.

“We welcome the release of any prisoners,” said Palestinian Foreign Minister Riad Malki. “But this is not enough. We will continue demanding the release of all prisoners.”

Mr Olmert and Mr Abbas have been meeting frequently to lay the groundwork for the US conference.

Israel and the Palestinians hope to use it to renew formal peace talks, which broke down in violence seven years ago. The US also hopes the gathering will give an international boost to Abbas in his power struggle against the Hamas militant group, which now controls the Gaza Strip. However, preparations have run into trouble.

The Palestinians want the conference to address issues at the heart of the conflict with Israel, such as the borders of a future Palestinian state, shared sovereignty over disputed Jerusalem and the fate of Palestinian refugees. Israel says the summit should be a forum to formally renew talks, with discussions on core issues to follow.