The Latest on Israel-Gaza-Palestine (13 February)

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1:55 p.m. An Israeli airstrike has killed one Gazan militant and critically wounded another. Two other people reported injured.

1:45 p.m. It looks like a prisoner swap involving Israeli soldier Gilad Shalit is part of the cease-fire package. Hamas official Moussa Abu Marzouk (pictured) is quoted by an Egyptian news agency, ""We want the release of our detainees in exchange for Shalit. If Israel agrees to our list, we will make the deal."

Hamas has submitted a list of 1400 prisoners; diplomatic sources say Israel is willing to free closer to 1000.

10:20 a.m. A series of details, some of them conflicting, are emerging over the possible Israel-Gaza cease-fire arrangement.

All accounts agree the time period is 18 months but the status of border crossings is unclear. Hamas has demanded a full opening, but the Israeli newspaper Yediot Aharonot is reporting that Israel will only about 80 percent of goods to pass. Prohibited items would include "pipes, machines and other raw materials liable to be used to manufacture rockets and explosives", and the two sides are still at odds over cement, concrete and construction iron.

Reuters is reporting that the crossings will have international monitors and also some Palestinian Authority guards. Turkish forces may also be involved.

There are also differences in reporting on a possible prisoner swap involving kidnapped Israeli soldier Gilad Shalit. Hamas has denied any arrangement involving Shalit, but Reuters, citing "Western and Palestinian officials", says a prisoner exchange is part of the deal.

7:40 a.m. Three Qassam rockets have hit the western Negev in Israel.

Morning Update (5:55 a.m. GMT; 7:55 a.m. Israel/Palestine): Hamas' declaration that a cease-fire agreement with Israel can be reached within 72 hours, which we noted in our last update yesterday, continues to be the top development. Moussa Abu Marzouk (pictured) says the proposal is for an 18-month cease-fire with opening of all border crossings.

The key question, of course, is whether Tel Aviv has indeed signalled its readiness that it will sign or whether Hamas is taking this public line to press the Olmert Government into acceptance.

Elsewhere, Egypt has seized 2200 tons of food and medical supplies that the Doctors' Syndicate was trying to take into Gaza and arrested two members of the aid committee. The seizure is both part of Egypt's general campaign to keep pressure on Hamas by limiting aid and part of Egyptian internal politics. The committee and the arrested men are linked to the Muslim Brotherhood, which is banned in Egypt.

Israel-Palestine: The Failed Olmert Offer for a Settlement

The Los Angeles Times, reporting on the Israeli election campaign, buries a significant revelation from the Israeli newspaper Yediot Aharonot. It is nothing less than an initiative by Israeli Prime Minister Ehud Olmert, launched last autumn, to get an agreement with the Palestinian Authority:

Under the proposal, Israel would relinquish any claim to the Gaza Strip, all but a small part of the West Bank and Jerusalem's Arab neighborhoods, a hand-over that would uproot more than 60,000 Jewish settlers from the West Bank.

The Jewish part of Jerusalem and large suburban-style West Bank settlements near the city would remain in Israel's hands. In return for annexed West Bank land, the Palestinians would get a strip of the Negev desert adjacent to Gaza and a tunnel or overpass connecting Gaza and the West Bank. The shortest route linking the territories would run about 30 miles across southern Israel.

An international body representing Saudi Arabia, Jordan, the Palestinian Authority, Israel and the U.S. would administer religious sites in Jerusalem's Old City and holy basin to ensure access for Christian, Muslim and Jewish worshipers. Israel would retain formal sovereignty over those sites.

Palestinians who fled or were forced from Israel around the time of the Jewish state's founding in 1948 would forfeit their right to return, although Olmert offered to accept a limited number -- up to 50,000, according to Israel's Channel 10 television -- under a family reunification program.

The Palestinian Authority was sceptical of the proposal, as it was only verbal and left too many details unsettled. Chief negotiator Saeb Erekat says, "[PA President Mahmoud] Abbas told Olmert that we will not be part of an interim agreement. Either we agree on all issues, or no agreement at all."