US attempts to release an alleged American-Israeli spy have yet to succeed, reports Doaa El-Bey The Supreme Council of the Armed Forces (SCAF) has turned down calls by US Defense Secretary Leon Panetta to release Ilan Grapel, an Israeli-American accused of being a Mossad spy. Meanwhile, in a meeting with journalists at the US Embassy in Cairo, Panetta denied his involvement in any direct negotiations over the release of Grapel, adding that he had heard some news reports suggesting his imminent release. Panetta concluded a visit to Cairo on Tuesday during which he held talks with the head of the ruling military council Field Marshal Hussein Tantawi and Prime Minister Essam Sharaf. The release of Grapel was one of the issues discussed during the meeting which also focussed on the situation in Egypt. Panetta reaffirmed the US commitment of a strong, long-term military relationship with Egypt. He also expressed his country's willingness to help in the democratic transition in Egypt and underlined the importance of lifting emergency laws. Grapel is a dual US-Israeli citizen detained in Cairo in June on suspicion of being a spy for Israel. He allegedly sought to inflame the passions of demonstrators, encouraging them to clash with military forces during the 25 January Revolution. Before Panetta's visit, several news reports suggested a deal was in the works to release Grapel in return for freeing dozens of Egyptians detained in Israeli prisons. Various Israeli newspapers and Israeli TV reported that the deal was almost complete. It was also said Grapel would return to Washington with Panetta at the end of the defense secretary's trip. Although the deal was not made yet, observers believe that it might just be delayed. Israeli newspaper Maariv had published the details of the release of Grapel on Tuesday in return for the release of 28 Egyptians held in Israeli prisons. Mohamed Said Lotfi, a human rights activist and head of the campaign to defend Egyptian prisoners in Israeli jails, issued a statement on the same day opposing Grapel's release because he said he should be tried as a spy. "However, if he must be released, then the deal should be in return for the release of all Egyptian prisoners in Israeli jails," Lotfi added. There are currently 78 Egyptians being held in Israeli prisons, three of whom are below the age of 14. They are accused of infiltrating the borders. Panetta's visit came after American congressmen reportedly suggested to offer Egypt an extra $1 billion in economic aid as a further bonus to Egypt if Grapel were released. However, the US threatened to curtail military aid to Egypt if Grapel remained detained. The US has a history of using aid to pressure other countries, interfere in their internal affairs or force upon them decisions which goes against their interests. Since 1979, US aid to Egypt has averaged around $2 billion a year, the second largest amount of aid after Israel. Both countries were offered assistance in return for signing the Camp David accords. The vast majority of the aid to Egypt is earmarked for the military. In recent years Egypt has received about $1.3 billion in military aid annually. Part of the aid, intended to promote democracy, has been gradually cut in recent years, to about $20 million in 2009. Asked at the embassy meeting about the Egyptian-Israeli peace treaty, Panetta repeated official Egyptian statements that Cairo would abide by signed international treaties and reiterated Egypt's responsibility to maintain security in Sinai. He added that he has no information regarding an Egyptian demand for amending the peace treaty. Lotfi said Egyptian-Israeli relations noticeably deteriorated following the revolution. He said popular dissatisfaction with the peace treaty was increasing and the rejection of normalisation of relations was on the rise. "Thus whatever the Israelis do, it will not be enough, especially after the killing of Egyptian soldiers on the borders in August and Tel Aviv's practices against the Palestinians in Gaza and the West Bank," Lotfi told Al-Ahram Weekly. Panetta's tour, his first to the region, took him first to Tel Aviv during which he met Israeli Defence Minister Ehud Barak, Palestinian President Mahmoud Abbas and Israeli Prime Minister Binyamin Netanyahu. Panetta reiterated the US administration's view that the two sides must restart the long- stalled peace talks. And during a news conference with Barak, Panetta said it was time for bold action by both sides to move towards a negotiated two-state solution. However, Panetta's visit is not likely to give the peace negotiations much of a boost because the Israelis refuse any pre-conditions or timeframe for the negotiations. Palestinians do not object to returning to the negotiating table provided that the Israelis stop settlement building in the West Bank and Jerusalem. Panetta regarded his visit as a chance to reaffirm US support for Israel. He told Israeli officials that the people of Israel "could be confident in America's enduring commitment to their freedom and security, especially during this time of dramatic change in the Middle East." The third leg of the visit took Panetta to Brussels for a meeting of NATO defence ministers on the Afghanistan war and the military mission in Libya. In a related development, the Islamist group Jamaat held a press conference in front of the American Embassy in Cairo on Monday. The conference was called "America backs its spies. Where is Egypt and its scientists?" It asked the SCAF to swap Grapel with the group's spiritual leader Omar Abdel-Rahman held in a US prison. The fact that Egyptian officials were able to decline a US-Israeli request indicates a change in post-revolution Egypt. But will the position last?