Arab sources in Gaza said Monday that Egyptian mediators had asked Hamas to limit its demands in negotiations with Israel for the release of kidnapped IDF soldier Gilad Shalit.  According to the sources, the Egyptian team told Hamas to cut back its list of terrorist prisoners from 1,400 to 700.  Hamas is demanding that Israel release the prisoners in exchange for Shalit.

Egypt reportedly offered to ease restriction at the Rafiah crossing if Hamas agreed to the reduction.  Thousands of Gaza residents have been unable to reenter Gaza from Egypt because Egypt refuses to open the crossing, fearing a mass exodus of Gaza Arabs to Sinai.