GAZA CITY, 4 September 2006 — Palestinian Prime Minister Ismail Haniyeh denied yesterday that there was a time limit for the formation of a national unity government adding that discussions were still on. “We are still holding preliminary talks and I cannot say when they will conclude,” the prime minister said while visiting Al-Karmel School here.

Haniyeh was commenting on remarks yesterday by a spokesman for President Mahmoud Abbas that a national unity government would be announced within 10 days. Talks on a coalition government are based on a document agreed on by Palestinian prisoners in the Israeli jails.

Haniyeh’s announcement came as an Israeli newspaper said that Israel could release up to 800 Palestinian prisoners in exchange for a soldier captured by fighters in early June under secret talks being brokered by Egypt.

Quoting unnamed security officials, top-selling daily Yediot Ahronot said Israel would free the prisoners in three stages and that the negotiations were being held up over the timetable of the releases.

Israel has refused as part of the deal to release Marwan Barghouti, a leader of the Palestinian uprising and a top official of Abbas’ Fatah party, it said.

Palestinians captured Cpl. Gilad Shalit in a June 25 cross-border raid that left two other soldiers dead, sparking a large-scale Israeli offensive in the coastal strip to recover the serviceman. The continuing offensive has killed more than 200 Palestinians. Speaking on the issue, Haniyeh said: “The Egyptians are making a lot of efforts. There are certain things going on to solve this question but there is nothing specific. We hope the Egyptian efforts succeed.”

Top-level Israeli envoy Ofer Dekel was recently dispatched to Cairo by Prime Minister Ehud Olmert to discuss Shalit’s release, Israeli public radio said. Olmert’s spokeswoman Miri Eisen refused to confirm or deny the report, repeating only Israel’s official position that it “does not negotiate with terrorists.”

In Ramallah, the acting Palestinian finance minister confirmed that Egypt was brokering talks. “Egypt is conducting negotiations with Palestinian factions and with Israel and us in the government,” Samir Abu Eisheh said. “Our position is to support these Egyptian efforts to solve the issue of the Israeli soldier and Palestinian prisoners,” he said. “We heard that a resolution was near but we do not have any details as we are not party to these negotiations.”

Shalit’s father was pessimistic. “I am aware of contacts but not of advancement, and therefore I am not encouraged,” Noam Shalit told Israel Radio. “The advancement is only in the newspapers.”

Osama Al-Muzaini, a Hamas member who is one of the links between Hamas and the fighters involved in Shalit’s capture, said he knew nothing new about the status of the negotiations. “Unfortunately nothing is moving,” he said.

During his visit to the school in Gaza city, Haniyeh demanded Arab and Islamic countries help in breaking the financial siege imposed on the government and the Palestinian people and to help stop the daily suffering. In a clear reference to a ongoing teachers’ strike, Haniyeh said: “If we want to protest, we have to protest against those who are killing our children and who are imposing siege on us.”

A Palestinian news agency said yesterday that a minister in the Hamas-led government has quit his post. The report by the Ramattan news agency did not elaborate on the reasons why Minister of Information Technology Jamal Al-Khudari resigned.

The resignation follows growing pressure on the government by employees who have not yet received salaries since the government took office in March. However, it was still unclear whether the resignation was linked to the nonpayment of salaries.