SHARM EL-SHEIKH, Egypt, 26 June 2007 — Israeli Prime Minister Ehud Olmert said yesterday he will release 250 Fatah members from Israeli prisons in a goodwill gesture aimed at boosting Palestinian President Mahmoud Abbas after Hamas’ victory in Gaza.

Olmert made the announcement at a summit with Abbas and the leaders of Egypt and Jordan in this Red Sea resort. “As a gesture of good will toward the Palestinians, I will bring before the Israeli Cabinet a proposal to free 250 Fatah prisoners who do not have blood on their hands, after they sign a commitment not to return to violence,” Olmert said in a speech to the gathering.

The Israeli leader also promised to “improve freedom of movement of the Palestinian population in the West Bank substantially” and reopen trade ties with the territory, saying he wanted to show the Palestinians that “choosing the path of peace and dialogue will bring a better, more comfortable, more peaceful life.”

The bloody conflict between Abbas’ Fatah movement and Hamas has effectively split the Palestinians between a Hamas-controlled Gaza Strip and a West Bank, run by Western-backed Abbas’ emergency government. The Arabs and Palestinians are pressing Israel to quickly snap up the opportunity to make progress in peace talks with Abbas that they think will boost his legitimacy and swing Palestinians’ support his way.

Abbas, Egypt and Jordan are also hoping the Sharm El-Sheikh summit can pave the way for a resumption of negotiations on the key issues of the Israeli-Palestinian dispute.

Olmert did not promise an immediate resumption but said the steps he was taking aimed at leading to such negotiations. “I don’t intend to let this opportunity pass,” he said.