HAMAS POLITICAL LEADER KHALED MASHAAL ON MONDAY INSISTED THAT ISRAEL MUST FREE PALESTINIAN PRISONERS TO WIN THE RELEASE OF AN ISRAELI SOLDIER CAPTURED BY HAMAS-LINKED PALESTINIAN FIGHTERS. MASHAAL, WHO ISRAEL HAS THREATENED TO KILL, SPOKE IN DAMASCUS DURING HIS FIRST PUBLIC APPEARANCE SINCE THE CRISIS ERUPTED FOLLOWING THE JUNE 25 CAPTURE OF CPL. GILAD SHALIT. «THE PALESTINIAN PEOPLE ARE UNITED ON INSISTING THAT THE (ISRAELI) PRISONER SOLDIER BE TRADED FOR (PALESTINIAN) PRISONERS IN ISRAELI JAILS,» HE TOLD A NEWS CONFERENCE, REITERATING WHAT HIS AIDES HAVE SAID SINCE THE SOLDIER WAS TAKEN. «WE SAY TO THE WORLD THAT WE AS A TRUE PEOPLE AND MOVEMENT DO NOT FORGET OUR PRISONERS,» HE SAID. MASHAAL BLAMED ISRAEL FOR THE COLLAPSE OF EGYPTIAN, QATARI AND EUROPEAN MEDIATION EFFORTS TO SOLVE THE CRISIS OVER THE CAPTURED ISRAELI SOLDIER. «THESE EFFORTS HIT SNAGS OVER ISRAEL'S INSISTENCE ON THE RELEASE OF THE ISRAELI SOLDIER AND ITS REFUSAL TO RELEASE PALESTINIAN PRISONERS,» HE SAID. «THIS IS NOT A SOLUTION ... WE DON'T WANT ESCALATION. WE ARE FOR A PEACEFUL, QUIET RESOLUTION.» «THE SOLUTION IS SIMPLE: AN EXCHANGE. BUT ISRAEL REFUSES THAT,» HE WAS QUOTED AS SAYING BY THE ASSOCIATED PRESS.