Angry start to Palestinian talks

And as Gabi Ashkenazy, the Israeli military's Chief of Staff warned of the growing prospect of a "big operation" in Gaza to counter Qassam rocket fire, Eli Moyal, mayor of Sderot,the Israeli town closest to the Gaza border, resigned, saying he hoped the move would spur tougher measures against Hamas.

Mr Moyal, whose town has borne the main impact of the Qassams, announced his resignation after an estimated 20 rockets hit Sderot and the surrounding area yesterday, causing minor damage and lightly wounding one woman. Islamic Jihad said it had fired 11 of the rockets in retaliation for the Israeli incursion which killed at least six militants on Tuesday.

General Ashkenazy told an Institute for National Security Studies conference in Tel Aviv that daily offensives like Tuesday's "broad operation" in Gaza helped to reduce but not halt the rocket fire. "We will come to the point where we will have to carry out the big operation" he added.

Meanwhile Palestinian Liberation Organisation negotiator Saeb Erekat said that his side had raised the plans to build 300 new homes in Har Homa and "expressed our outrage." He added: "We are coming to negotiate over Jerusalem and borders, and the dictation and facts on the ground continue. If you want to restore the credibility of the peace process, the Israeli government must revoke this order."