ISRAEL has rejected demands by Palestinian President Mahmoud Abbas that two jailed militant leaders be freed in return for the release of a captured Israeli soldier. Mr Abbas told Egypt’s Mehuar satellite television yesterday that he would seek the release of Marwan Barghouti and Ahmed Saadat in prisoner exchange talks led by Egypt. But Israeli Deputy Prime Minister Shimon Peres has told public radio that Mr Abbas “would be making a mistake if he set conditions for the release of (Corporal Gilad) Shalit,” the soldier who was captured on June 25. Full Story