Hamas takes issue with Egypt truce proposal

CAIRO (Reuters) - Efforts to reach a ceasefire between Israel and Hamas in Gaza hit a snag on Tuesday, with the Islamist group saying it had "substantial observations" to make on an initiative proposed by Egypt.

Senior Hamas official Moussa Abu Marzouq told Al Jazeera television any ceasefire proposal must address the group's demands for an Israeli withdrawal from the Gaza Strip and a complete opening of border crossings.

"This initiative, if it is to be accepted, will be on the basis set by the movement from the beginning," he said.

"I believe this track will be the launch point for the acceptance of any initiative, Egyptian or otherwise" by Hamas, he added.

A Hamas delegation is in Cairo to relay the group's position to Egyptian intelligence officials.

The Egyptian initiative calls for a temporary truce, followed by a long ceasefire and the opening of border crossings with the presence of the Palestinian Authority of President Mahmoud Abbas, whose forces Hamas drove out of Gaza in 2007.

The third phase of the initiative deals with efforts to reconcile Hamas and Abbas's Fatah group.

Lebanese political sources close to Hamas said on Monday that the movement would reject Egypt's proposals.

One senior source said the group was opposed to three key elements in the proposal, worked on by Egypt and international diplomats in recent days.

"Hamas opposes a long-term truce -- the Egyptians speak of 15 years --, it is opposed to any ceasefire being set without it being accompanied by immediate pullout of Israeli troops from newly occupied positions in Gaza, and the presence of foreign observers on the Rafah crossing point," the source said.

Diaa Rashwan, an Egyptian political analyst, said it was clear Hamas would have serious concerns about the proposals.

"The issue of the truce, whether 10 or whatever years would have been acceptable if it was linked to the comprehensive settlement of the Israeli-Palestinian issue ... so that the ceasefire has a political meaning," he said.

Accepting a 15-year truce without that, he argued, meant acknowledging that the Israeli occupation of Palestinian territory may continue for the entire duration.

Analysts say the Egyptian government may be reluctant to link Hamas to the peace negotiations with Israel because it may upset Abbas, the chairman of the Palestine Liberation Organization, which is in charge of peace talks.

(Writing by Alaa Shahine; editing by Jon Boyle)