Egyptian President Hosni Mubarak told reporters after meeting with visiting German Chancellor Angela Merkel Saturday that the peace process cannot continue before freeing Shalit and ending the Fatah and Hamas war. No signs of his fate or condition have been released since he was abducted last June by terrorists from Hamas and two other terrorist gangs in a cross-border attack that killed two other IDF soldiers.



"It [peace] all depends on the soldier that was detained by the Palestinians, and at the same time the Palestinians are demanding the release of their detainees. We are working on this line, and we hope that we reach a solution soon," he said.



Mubarak added Egypt still is trying to negotiate a deal, but all previous attempts have failed. Hamas has blamed Israel for the impasse by not agreeing to demands that Jerusalem free more than 1,000 prisoners, including convicted terrorists.



Israel has a long-standing policy not to release terrorists "with blood on their hands," and dozens of other freed terrorists have rejoined gangs and carried out attacks on Israeli soldiers and civilians. Many of them are officers in the Hamas and Fatah militias.



Mubarak did not mention to reporters the previously announced charges against three Israelis and one Egyptian on suspicion of spying for Israel. The Israelis are in Canada and Turkey and therefore have not been arrested.



Egyptian prosecutor Hisham Badawi identified the Israelis as Kemal Kosba and Tuncay Bubay, who also are Turkish nationals, and Daniel Levi. The Egyptian was named as Mohamed Essam Attar, who also is a Canadian citizen, and he was arrested last month in Cairo.



The Israeli Foreign Ministry said it knew nothing about the charges.