JERUSALEM, Jan 7 (Reuters) - Israel said on Wednesday it viewed "positively" talks with Egypt over a proposal to halt fighting in the Gaza Strip but the Jewish state stopped short of accepting a ceasefire.

In a statement, Prime Minister Ehud Olmert's office said Egypt was trying to find "a solution aimed at stopping terror attacks from Gaza as well as halting the smuggling of weapons to the Gaza Strip".

"Israel views positively dialogue between Egyptian and Israeli officials to advance those issues," the statement said, but it stopped short of saying whether Israel would accept a ceasefire.

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