Israeli PM denies truce talks with Hamas

JERUSALEM (AFP) — Prime Minister Ehud Olmert on Monday denied that Israel was engaged in truce talks with Hamas, but said it would have no reason to strike Gaza if there were no rocket fire from the territory.

His statements came as Israel and Hamas appeared to be abiding by a tacit agreement to hold fire in and around the Gaza Strip amid Egyptian efforts to secure a broader truce deal after a bloody explosion of violence there.

"There is no deal, there are no negotiations, either direct or indirect," Olmert said at a press conference with visiting Czech counterpart Mirek Topolanek.

"There is an unequivocal demand that hasn't changed, and if this demand is fulfilled, there will be no need for a ceasefire," he said.

"If the terror stops, if the Qassams stop landing on residents of Sderot and if Grads stop landing on Ashkelon... Israel will have no reason to fight the terror organisations there.... We will have no reason to retaliate."

Olmert was referring to cities in southern Israel that have borne the brunt of rocket fire from Gaza militants.

"Israel has not asked Egypt to mediate with Hamas on a ceasefire. Egypt is not playing any role in negotiations with Hamas," he said.

"The army has full freedom to act (in Gaza) at any given time... without any restraints."

The comments contradicted statements from Egypt that Cairo, supported by the United States, has been working on a comprehensive deal between Israel and Hamas, which seized control of Gaza nearly nine months ago.

In a statement in Gaza, Hamas said it was working with the Egyptians to reach a ceasefire agreement.

"We appreciate what Egypt is undertaking," said Ismail Haniya, who was prime minister in the Hamas-led unity government which Palestinian president Mahmud Abbas fired in the wake of the Islamists' takeover of Gaza in June 2007.

Hamas "will help the Egyptian leadership to reach a reciprocal and simultaneous truce that will at the same time lead to the lifting of the blockade imposed on the Palestinian people", he said.