Israel knows where Gilad Shalit is being held captive, the Israeli armed forces chief said. “We know who is holding Shalit, and where,” Israel Radio quoted Lt.-Gen. Gabi Ashkenazi as saying Monday in an address to new military draftees. The remarks stirred speculation that Israel could be preparing an operation to rescue Shalit, a tank crewman who was abducted to the Gaza Strip by Hamas-led gunmen in June 2006 and has been kept mostly incommunicado since. But Internal Security Minister Avi Dichter told the radio station that there has been no change in Israel’s intelligence gathering on Shalit or policy of holding Egyptian-brokered negotiations on his return. Hamas has demanded that Israel free hundreds of jailed Palestinian terrorists in exchange for Shalit, but Jerusalem has balked at the asymmetry of the proposed swap. Israel Radio quoted Ashkenazi as saying that retrieving Shalit is crucial so that all those serving the Jewish state know they will not be abandoned on the battlefield.