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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The Hamas-led Palestinian government on Wednesday called for a prisoner swap with Israel to solve the Gaza crisis. It was the first time the government has proposed exchanging a captured Israeli soldier for prisoners held by Israel.
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Egypt&#39;s release of accused Israeli spy Azzam Azzam in an apparent swap for six Egyptian students held on suspicion of terrorism is expected to melt the ice and perhaps result
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Israel and the Palestinians have reached   an agreement to swap the Israeli soldier held hostage in Gaza   with imprisoned Palestinians, Palestinian President Mahmoud   Abbas was quoted on Tuesday as saying.
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Israel has approved the release of 170 Palestinian prisoners, most of them Fatah members, as a goodwill gesture towards Egyptian President Hosni Mubarak.
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Sunday's swap of an Israeli spy for Egyptian students is indicative of a post-Arafat thaw between the nations.
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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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Israel on Suntoday agreed to release 170 Palestinian prisoners in what Prime Minister Ariel Sharon described as a goodwill offering to Egypt&#39;s President Hosni Mubarak.
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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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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.
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Israeli officials see opportunity to turn Gaza over to Egypt to provide services.
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The prisoner swap deal between Israel and Egypt is one of the most vivid signs of a warming in the &quot;cold peace&quot; between the two countries.
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Israel has agreed to release 170  Palestinian prisoners to show goodwill ahead of a Palestinian  election and as a gesture to Egypt for freeing a convicted  Israeli spy, officials said Sunday.
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In a partnership hailed as a major boost to often chilly ties, Egypt and Israel signed a first joint trade accord with the United States since their historic peace treaty 25 years ago.
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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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Israel agreed on Sunday to free up to 200 Palestinian prisoners to show goodwill after Egypt freed a convicted Israeli spy and ahead of elections for Yasser Arafat&#39;s successor, officials said.
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Six Egyptian students captured sneaking into Israel have been exchanged for an Israeli businessman convicted in Egypt as an Israeli spy.