CAIRO - The Arab League and democratically elected movement Hamas said on Sunday Arabs should not normalise ties with Israel so long as Tel Aviv sticks to plans to build more illegal Jewish settlements in the occupied Palestinian land of East Jerusalem and West Bank.
"It is impossible to speak of normalisation when Israel rejects any significant measure," Arab League chief Amr Mussa said at a joint news conference in Cairo with Hamas supremo Khaled Meshaal.
"Israel persists in its intransigent position and rejects every significant measure" concerning a freeze in settlement constructions, he said.
His remarks came after Israeli Transport Minister Yisrael Katz said on Sunday that the Tel Aviv would not give up plans to boost illegal Jewish settlement construction despite widespread international criticism.
Hardline Prime Minister Benjamin Netanyahu "will announce in the coming days the construction of several hundred additional homes" in the occupied West Bank, Katz, a close ally of the premier, told Israeli public radio.
The number of new housing units to be approved could range between 400 and 700, Israeli media reported.
"I don't believe that any Arab government can offer Israel the gift (of normalisation) on a silver platter. This issue (normalisation) must be closed," Mussa said.
"I believe that there will be a very violent reaction across the Arab world should we learn that someone normalised (ties with Israel)," he added.
Meshaal agreed with Mussa and warned Arab countries "against giving the Israelis the reward of normalisation."
He also warned against US policy in the Middle East which he said "aims bringing into alignment Arab countries against Iran, rather than against Israel."
Nevertheless the Damascus-based Meshaal said that Hamas "will monitor closely what (US President Barack) Obama will propose on the sidelines of the UN General Assembly" later this month concerning the peace process.
Palestinian-Israeli prisoner swap in early stages
Meshaal confirmed on Sunday that Germany is mediating an Israeli-Palestinian prisoner swap that would include Israeli soldier Gilad Shalit but stressed the bid is in its early stages.
"Concerning Shalit, as you know there is some development as a result of the Germany mediation bid in coordination with Egypt," Meshaal told a joint news conference in Cairo.
"But we are in the early stages. We have not discussed any (Palestinian) names nor any details," said the exiled leader of Hamas during a visit to Egypt.
"More time is needed" before any real progress can be announced, Meshaal said. "We must be cautious and not hasty."
Meshaal discussed the swap on Saturday with Egyptian intelligence chief Omar Suleiman, who has unsuccessfully brokered indirect talks between Israel and Hamas on the issue, and is Cairo's point man on efforts to reconcile rival Palestinian factions.
"The topic of the prisoners was one of the main subjects raised during the session," an Egyptian official was quoted as saying by the state-run news agency MENA.
"Finding a solution to this topic will have a major impact on the other questions, such as lifting the blockade and the permanent opening of the crossing points" with the Gaza Strip, he said.
Meshaal, in Cairo since Friday at the head of a large delegation, also discussed with Suleiman efforts to end a protracted rift between Hamas and the Fatah party of Mahmud Abbas.
The talks focused on "how to end... Palestinian divisions as quickly as possible, ahead of the political process likely to be launched following the announcement by the United States in a few weeks' time of their vision for a solution to the Israeli-Palestinian conflict," the Egyptian official said.
Cairo wants the dialogue to resume after Eid al-Fitr, the festival marking the end of the Muslim fasting month of Ramadan, which this year will be on September 21 or 22.
Abbas said on Saturday after meeting Egyptian President Hosni Mubarak that Cairo is reviewing the positions of each Palestinian faction before making proposals "within the next week" and setting a date for a final round of talks.
Egypt has twice postponed the date scheduled for signing a Palestinian unity agreement because of continued disagreements between the rivals.
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