Hamas and Israel truce talks falter over crossings

GAZA (Reuters) - A suicide truck bomb at one Israeli checkpoint and violence at a rally by Hamas at another on Thursday highlighted frustrations in the Palestinian enclave at slow progress in efforts to secure a ceasefire with Israel.

A pro-Hamas website said Cairo talks on a proposed truce between Gaza's militant groups and Israel had close to broken down. It blamed an Israeli refusal to allow a full and immediate reopening of Gaza's crossing to Egypt, at Rafah.

A senior Hamas official who took part in talks in Cairo with Egyptian mediators said on his return to Gaza on Thursday that he would not confirm a breakdown of the talks and that the group would seek further clarification of the Israeli position.

"We have listened to the Israeli responses," Hamas's Khalil al-Hayya said. "These responses require clarification and some answers and we await these answers in a few days. We hope they will be positive so that the siege on our people can be lifted."

Palestinian President Mahmoud Abbas said he is not encouraged by the lack of progress in the Egyptian-mediated talks.

"The latest information doesn't give much hope. During the past months I have asked our brethren in Egypt to intervene to achieve this truce," Abbas told a news conference with French Foreign Minister Bernard Kouchner in Ramallah.

"Today I cannot say that we have satisfactory news. Until now there are still obstacles," he said.

Palestinian officials familiar with the talks said Israel offered to hold back military activity, open what was previously the main freight crossing from Israel to Gaza at Karni, boost supplies into Gaza and to increase fuel shipments.

However, Israel was reluctant to approve an immediate reopening of Rafah, the main point of contact for Gazans with the outside world given Israel's refusal to let most people into Israel through the other main passenger terminal at Erez.

All the crossings have largely been shut since Hamas seized control of the coastal strip last June when its fighters routed the forces of Palestinian President Mahmoud Abbas's Fatah faction.

After the takeover, Israel tightened a blockade on the territory as Islamist militants attacked the Jewish state and continue to do so with almost daily barrages of makeshift rockets and mortar bombs.

Egypt has opened Rafah crossing from time to time, largely to people needing medical treatment and for humanitarian cases.

The pro-Hamas website reported that Israel's demands "shocked" negotiators from the Islamist group which seized control of the Gaza Strip almost a year ago.

It outlined the issues, saying Israel would only agree to a truce in return for an end to the rocket launchings and other attacks from Gaza. It added that Israel might agree to lift the blockade on the coastal territory only after it was certain that the truce was holding.

The release of Israeli soldier Gilad Shalit, who was seized in a cross-border raid almost two years ago, was also integral to a deal, the report said.

Israeli officials had no new comment on the truce negotiations. Officials have made clear they would like to see progress on releasing Shalit but have not made his freedom a precondition for a ceasefire.

Some pundits in Gaza say they think Hamas does not want to declare a failure of the talks in order not to give Israel free rein to begin a large scale military operation in the coastal strip which is home to some 1.5 million Palestinians.

(Writing by Ori Lewis; Editing by Jon Boyle)