UN 'to mediate in soldiers' row'

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UN Secretary General Kofi Annan says Israel and Hezbollah have accepted his offer to mediate in the dispute over two captured Israeli soldiers.

Hezbollah seized the soldiers during a cross-border raid in July, triggering the recent conflict with Israel.

The group has called for an exchange of prisoners with Israel.

Israel has repeated its view that the soldiers must be freed unconditionally and has said the UN will assist, rather than mediate, towards this end.

The Israelis have given an oblique response to Mr Annan's offer, the BBC's Jill McGivering reports from Jerusalem.

She says it is politically awkward for Israel to endorse the idea that the UN is brokering negotiations between Israel and Hezbollah.

Israel's public position is that it will not negotiate with Hezbollah, which it regards as a terrorist group.

However, our correspondent says many Israelis accept that a deal - of the kind struck over prisoners in the past - is likely.

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