Israel's outgoing Prime Minister Ehud Olmert on Tuesday night nixed Hamas's current demands in a possible prisoner swap, saying it is impossible for his country to accept.

In a televised address, Olmert said that Israel presented "generous, far-reaching proposals" aimed to bring kidnapped soldier Gilad Shalit back from Hamas, which would include some "with blood on their hands" among the several hundred Palestinian prisoners green-lighted for release, but Hamas rejected the offers.

The remarks followed a special cabinet meeting in the afternoon, during which two special envoys updated the ministers on details of their intensive talks in Cairo over the weekend with Egyptian mediators on a possible Hamas new offer for Shalit freedom, which Olmert said Monday was the last chance for an agreement before he leaves office in just a matter of weeks.

All cabinet ministers have agreed that Hamas' current conditions "prevent the possibility of completing the talks and returning Gilad Shalit home," said the outgoing premier, putting the blame squarely on Hamas.

Dubbing Hamas a cruel, murderous and unscrupulous group, Olmert stressed that Israel "spared no efforts" but will not give in to Hamas. "The State of Israel has red lines. We will not cross them."

While pledging continued efforts for the now 22-year-old household-known soldier who was abducted shortly after Olmert became the prime minister in 2006, the outgoing premier said that no new offer would be relayed to Hamas, a stance that seemingly dashed the hope of a deal on his watch.

"It was made clear that Hamas did not agree to show flexibility in the Egyptian-mediated negotiations, reneged on written understandings that had been submitted previously and insisted on the release of 450 prisoners that it had demanded from the outset," Olmert's office said in statement following the closed-door meeting.

It echoed a Monday night statement accusing Hamas of stymieing the negotiations by hardening its position and raising "extreme demands."

In response, the Islamic group categorically rejected Israel's accusations, stressing that it has stuck to its demands and that "Israel is the one that hindered Shalit's deal" as it did not present any serious offer during the Cairo talks.

"We will kidnap more Israeli soldiers to free our prisoners in Israeli jails," claimed a press statement from the Gaza Strip ruler, which has purportedly been hiding Shalit somewhere in the coastal enclave.

Palestinian sources said that Hamas asked Israel to free over 1,000 out of the estimated some 10,000 Palestinians in Israeli jails, including 450 people it named out on a list presented to Israel. Others would be women, children and leaders of Palestinian factions.

However, among the identified prisoners, who were involved in suicide bombings and other deadly attacks against Israelis, the Jewish state reportedly agreed to release only 320, and meanwhile conditioned the release of a number of others on their expulsion from the West Bank.

Israel on Tuesday also published two lists, respectively offering examples of dangerous prisoners it was willing and unwilling to release. Among the rejected was Abdullah Jamal Barghouti, 36, who was sentenced to 67 life terms for murder and involvement in a series of terrorist attacks.

Local media has speculated that both Olmert and Hamas would desire to solve the problem, as the former might use the success to burnish his legacy and the latter would find Olmert's successor, hawkish Likud party leader Benjamin Netanyahu, to be more difficult to deal with.

Yet the latest development burst their wishful bubbles, which would likely trigger a series of negative follow-ups.

Israeli officials reiterated on Tuesday that before Shalit's return, Israel would not open its border with Gaza, which would in turn hamper Gaza reconstruction following Israel's massive operation in December and January.

Meanwhile, the failure of a prisoner exchange would eventually block the two sides from signing any long-term truce deal, creating a scenario where another sudden flare-up of violence is likely, which would further impede the already stalemated Israeli-Palestinian peace talks.

(Xinhua News Agency March 18, 2009)