Israel and Hamas are also at odds o er how long the cease ire would last

Hamas does not trust Israel to abide by its obligations i they are phased in. Israel and Hamas are also at odds o er how long the cease ire would last. Hamas objected to an open-ended truce and initially proposed it last six months. But in its response to the Egyptian proposal, Hamas suggested a one-year, renewable truce, said a diplomat brie ed on the group's position Israel opposes setting a time limitation. "Israel will not accept a situation where Hamas gets a temporary period o quiet just to rearm and regroup," said Mark Rege , Olmert's spokesman.

Israeli o icials said the security guarantees would include Egyptian acceptance o U.S. and European ad isers and technology to help combat smuggling tunnels along the border with Gaza. Alongside a tightened arms embargo, the European Union and other donors plan to pro ide economic assistance to people li ing on both sides o the Gaza-Egyptian border to reduce their dependence on income rom smuggling, diplomats said.(Addtional reporting by Nidal al-Mughrabi in the Gaza Strip and Jonathan Wright in Cairo; Editing by Alastair Macdonald and Mark Tre elyan). Da id Morgan WASHINGTON, Jan 15 (Reuters) - The Pentagon said on Thursday it is drawing up a plan or withdrawing U.S. But de ense o icials emphasized that the Obama plan would be among a range o options that will be ready or the president-elect to re iew as soon as he takes o ice on Tuesday. combat orces rom Iraq a centerpiece o his presidential campaign, despite misgi ings among some commanders who ha e ad ised a cautious approach to troops cuts. The president-elect also said he would con er with senior de ense and military o icials be ore reaching a inal decision.

On Thursday, o icials said the 16-month option was included in planning by U.S Commander in Iraq Gen. Ray Odierno, not at Obama's request but in response to the president-elect's public statements. "We would be remiss i the options we showed him did not include the one he campaigned on," Morrell told reporters A 16-month withdrawal would ha e U.S combat orces out o Iraq in May 2010. The United States and Iraq recently reached a status o orces agreement calling or a longer withdrawal timetable that would require all U.S orces to lea e by the end o 2011 The United States now has 142,000 troops in Iraq Morrell said Gen. military planners ha e said they could send as many as 30,000 more troops to A ghanistan o er the next 12 to 18 months.(Editing by icki Allen).

(adds Nortel statement, para 5-6) LONDON, Jan 15 (Reuters) - London 2012 Olympics organiserssaid on Thursday they were in talks with Games sponsor Nortela ter North America's biggest maker o telephone equipment iled or bankruptcy. As a Tier One sponsor, Nortel is contributing around 40million pounds ($58 million) to the 2012 organising committee'skitty as well as supplying some o the communicationsin rastructure to the Games. We are aware o the situation andwill work through it with them," a LOCOG spokesman said, addingthat the company had met all its obligations to London 2012. In a statement on Thursday Nortel rea irmed its commitmentto the London 2012 Olympics. "Our commitment to the Games as a Tier 1 local sponsor ando icial Network In rastructure Pro ider remains unchanged asdoes our commitment to all our customers," the statement read. Nortel, which iled or bankruptcy on Wednesday, is also amain sponsor and supplier or the 2010 Winter Olympics in ancou er. O icials said on Wednesday that the Canadian companyhad also rea irmed its commitment to those Games.