Israel, Egypt Swap Prisoners in Sign of Warmer Ties
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Egypt sent a convicted Israeli spy  home after eight years in jail and Israel released six Egyptian  infiltrators Sunday in a sign that relations strained by the  Palestinian uprising were warming.
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CAIRO -- In an effort to warm a frosty peace, Egypt and Israel signed their first trade agreement with the United States since reaching an historic peace accord more than two decades ago.
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Egypt released today an Israeli convicted of spying and Israel reciprocated by freeing six young Egyptians arrested in August after slipping into Israel's southern desert.
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Egypt and Israel completed a prisoner swap under which six Egyptian students held for plotting attacks on soldiers were freed in return for the release by Egypt of an Israeli Druze held for spying.
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JERUSALEM - Israel yesterday approved the release of 170 Palestinian prisoners in a goodwill gesture to Egypt and encouragement to interim Palestinian leader Mahmoud Abbas in hopes for future negotiations.
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When Egypt, Israel and the United States signed a trade agreement this week, it represented the most tangible step in a monthlong thaw in chilly relations between the Egyptians and Israelis.
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Israeli businessman Azam Azam was released Sunday in exchange for six Egyptian students in a new prisoner exchange agreement with Egypt.
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Egypt and Israel signed an agreement on Tuesday that will boost employment and might act as an impetus for other Arab countries to make peace with Israel.
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Relatives and friends screamed in delight at the homecoming of an accused Israeli-Arab spy whose release from an Egyptian prison could signal a thaw in Israel-Egypt relations.
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JERUSALEM, Dec. 19. - Israel today approved the release of dozens of Palestinian prisoners in a goodwill gesture meant to promote reconciliation with Egypt and the new Palestinian leadership, officials said.
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Egyptian President Hosni Mubarak said  Israel may release more Palestinian prisoners than expected as  part of a possible deal covering the release of an Israeli  soldier held by Palestinians.
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Israel on Monday began releasing 159 Palestinian prisoners as part of a prisoner swap with Egypt and in what is also seen as a gesture to the new Palestinian leadership.
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Israel had promised the release to Egyptian President Hosni Mubarak, in exchange for the release two weeks ago of Azzam Azzam.
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A convicted Israeli spy was released by Egypt on Sunday in exchange for six imprisoned Egyptian students under a prisoner swap. Azzam Azzam, an Israeli businessman jailed by
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Israel released six Egyptian students  from prison on Sunday as part of a deal which includes freedom  for Israeli businessman and convicted spy Azzam Azzam, Egyptian  security sources said.
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Israel is making progress in its efforts to secure the release of a soldier captured by Palestinian militants from the Gaza Strip, diplomatic and security officials said Sunday in the first sign from Israel that a deal could be worked out with the serviceman's captors.
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CAIRO - Egypt raised the possibility Tuesday of returning an ambassador to Israel soon, according to the official Mena news agency, a move that would signal a revival of full diplomatic ties after a four-year break.