[IMRA: Thanks to the retreat from the Gaza Strip Israel was unable to
rapidly deploy forces in a band extending from the (now abandoned)
Philadelphi Corridor deep enough to put border smuggling operations at a
temporary standstilll. Instead all that Hamas has to do to deal with the
Egyptian presence on the border is to pay the requisite bribes required in
order to move Shalit into Sinai and from there to waiting transportation.
Given that the operation was planned out in considerable detail it is
possible that all of this transpired even before the Israeli navy went on
alert.]

IDF intelligence officer: Shalit is in the southern Gaza Strip
JPost.com staff and AP, THE JERUSALEM POST Jun. 26, 2006
www.jpost.com/servlet/Satellite?cid=1150885856918&pagename=JPost%2FJPArticle%2FShowFull

Kidnapped IDF soldier Gilad Shalit is in the southern Gaza Strip, a senior
IDF intelligence officer told the Foreign Affairs and Defense Committee on
Tuesday.

Mohammed Abdel Al, spokesman for the Popular Resistance Committees, however
said that the soldier was in a secure place that the "Zionist enemy cannot
reach."

According to the officer the IDF was operating in order to prevent the
soldier from being moved out of Gaza and into Sinai.
The officer also revealed that the Kerem Shalom attack was being planned for
almost two months.

Meanwhile, Egypt deployed some 2,500 troops along its border with Gaza amid
concerns that Gazans would attempt to cross into Egypt in the event of an
IDF incursion.

US Ambassador to Israel Richard Jones expressed cautious optimism that
Shalit would be released. Jones also said the problem seemed to be in
Damascus [where Hamas leader Khaled Mashaal operates] and that efforts
should be focused there, Army Radio reported.

Earlier Tuesday, Shalit's family received a message from the IDF that Gilad
was suffering from a broken hand and a stomach wound.

The message was delivered to Israel by Palestinian Authority Chairman
Mahmoud Abbas who said that Shalit was being treated for his wounds.

Prime Minister Ehud Olmert and the security establishment decided not to
stop the transfer of supplies to the Gaza Strip after initially considering
whether to cut off water and electricity from the area if the soldier was
not released within 48 hours, Army Radio reported.

Olmert ruled out negotiations with Shalit's captors promising a "broad and
ongoing" military offensive in the Gaza Strip.

The IDF completed massing forces along the Gaza border overnight Monday, in
the area of Nahal Oz, to put pressure on the Hamas's armed faction, which
was believed to be holding Shalit.

Nevertheless, IDF officials said they were still pursuing a diplomatic
solution and conceded a broad attack could threaten the soldier's life.

After more than 24 hours of silence, the terrorists holding Shalit issued
their first demands Monday. The groups, all linked to the Hamas-led
Palestinian government, called for the release of all Palestinian women and
children under 18 held in Israeli prisons in return for information about
the soldier.

Olmert rejected the demand. Addressing Jewish leaders in Jerusalem Monday
evening, the prime minister charged that Sunday's Palestinian attack on an
army post near Kerem Shalom and the abduction of the soldier were part of a
"murderous, hateful, fanatical Islamic extremist desire to destroy the State
of Israel."

He declared, "This is not a matter of negotiations, this is not a matter of
bargaining ... release of prisoners is absolutely not on the agenda of the
Israeli government."