Israeli Prime Minister Ehud Olmert and Egyptian President Hosni Mubarak held talks on Thursday in a bid to relaunch the stalled Middle East peace process but their meeting revealed deep disagreements.
US President George W. Bush said meanwhile that the so-called diplomatic "quartet" on the Middle East should meet and that US Secretary of State Condoleezza Rice would visit the region "shortly."
At a news conference held at the Red Sea resort of Sharm el-Sheikh, Mubarak opened with criticism of an Israeli incursion in the West Bank political capital of Ramallah which left four Palestinians dead and 20 others wounded.
The veteran Egyptian leader expressed his "rejection and condemnation of the military operations by the Israeli army in Ramallah and all activities which could hamper efforts to reach peace," and called for an immediate end to the violence.
"Israel's security will not be achieved with military force but with a real will for peace," he said.
Olmert expressed regret for the loss of life, but maintained the necessity for self-defense.
"I regret if the innocent were touched in Ramallah, but Israel is obligated to carry out such operations to reinforce its security," Olmert said.
"Israel has to take all measures to prevent terrorists from hurting Israeli civilians," he added.
The premier levelled his own criticism at the Egyptian government for its failure to stop smuggling of weapons and money into the Gaza Strip.
"I know Egypt wants and will go to special measures to stop the smuggling," he said.
But in a sign of the tension between the two leaders, Mubarak sliced back saying that by allowing Palestinian officials to cross into the Gaza Strip, Egypt was acting legally.
Western countries froze all direct aid to the Palestinian Authority after Hamas' rise to power in March, until Hamas recognizes Israel and past peace deals.
"Egyptian law allows the passage of money as long as it has been declared," Mubarak said.
"We have exerted maximum efforts to prevent the smuggling of weapons. The prime minister has asked me to increase efforts, we will see in what way we can do this ... but it is impossible to guarantee the 100 percent lack of weapons smuggling anywhere in the world," he said.
In response to a question over the launching of rockets into Israel by Palestinian militants, Mubarak appeared dismissive.
"The Qassam rockets ... they will be launched all the time," he stated.
"Is it because of one or two people launching rockets that we should stop the peace process?" he asked.
Following the tense press conference, a senior Israeli official attempted to paint a brighter picture and said that "the atmosphere during the one-on-one talks was good. The chemistry between the two leaders is good."
He nevertheless admitted that disagreements run deep between the sides on several issues, and that the "Ramallah operation cast a shadow over the meeting."
The summit -- the second meeting between the two leaders since Olmert took office in March last year -- failed to announce any prisoner swap between Israel and the Palestinians.
Israeli soldier Gilad Shalit was captured in June near the Gaza Strip by three Palestinian groups including the armed wing of the governing Hamas, who are demanding the release of hundreds of Palestinian prisoners in return.
Both Mubarak and Olmert remained evasive as to how much headway was made in negotiations.
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