Egyptian President Hosni Mubarak (R) shakes hands with Israeli Prime Minister Ehud Olmert during a joint press conference after their meeting in the Red Sea resort of Sharm el-Sheikh Jan. 4, 2007. (Xinhua/AFP Photo) Photo Gallery >>>

CAIRO, Jan. 4 (Xinhua) -- Egyptian President Hosni Mubarak on Thursday afternoon held talks with visiting Israeli Prime Minister Ehud Olmert on ways to restart Mideast peace process, but the summit was overshadowed by a deadly Israeli military operation in the West Bank town of Ramallah. 

    The two leaders held an about two-hour meeting in Egypt's Red Sea resort of Sharm el-Sheikh in the Sinai Peninsula, which was the second in this resort in seven months. In the same place, the two had discussed the stalled Mideast peace process on June 4 in 2006, nearly two months after Olmert assumed his post.

    At a joint press conference after the meeting, Mubarak, whose country has long played a mediating role between the Palestinians and Israel, said he told Olmert of Egypt's condemnation and rejection against Israel's military operation in Ramallah.

    "The security of Israel and the region could only be achieved through just peace," Mubarak said, calling for an immediate end to acts of violence and refraining from practices which hinder peace efforts.

    Several hours before the Mubarak-Olmert summit, the Israeli army raided Ramallah to pursuit the alleged "wanted men," during which about three Palestinians were killed and up to 20 others injured.

    Olmert said he regretted if the operation caused any innocent Palestinian civilian casualties. But he defended the army raid, saying that Israel is obligated to take actions to protect the Israelis from "terrorists."

    Olmert said he discussed with Mubarak issues such as a prisoners wap deal between the Palestinians and Israel, means to resume Palestinian-Israeli negotiations as well as smuggling of weapons and funds into the Gaza Strip through Egypt's Sinai border.

    But Mubarak immediately fight back at Olmert's concern. "Egypt's laws allow the entry of funds (into Gaza) as long as they are declared and we enforce the Egyptian laws, not other laws," Mubarak said.

    On the smuggling of weapons, Mubarak said Egypt did its best to prevent any smuggling, "but no country in the world can prevent the smuggling and I think the liaison committees could play a role in this respect."

    Mubarak said the Egyptian efforts were aimed at breaking the deadlock in the Middle East peace process and going ahead with trust-building measures to pave the way for resuming Palestinian-Israeli negotiations.

    Egypt has opened the door of peace and will continue its good offices for achieving a just and durable peace in the Middle East,said Mubarak.

    Mubarak's country has been mediating a prisoner swap deal, which involves captured Israeli soldier Gilad Shalit, who has been held by Palestinian militants since June 25 last year, and Palestinian prisoners held in Israeli jails.

    Asked about when the deal could be reached, Mubarak said Egypt is still working closely with concerned parties on this issue and a deal would be struck in the near future, but he refused to give a specific date.

    Earlier in the day, Israel's daily newspaper Ha'aretz reported on its website that Egypt has already floated the possibility of holding a subsequent regional summit with additional participation of the leaders of Jordan and the Palestinian territories.

    Yet at the press conference, neither Mubarak nor Olmert confirmed the report.