Israel pledges to press on with Gaza offensive

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"We are acting to hit the Hamas infrastructure ... the final target is to bring an end to the firing of Qassams," Defence Minister Ehud Barak said about the crude rockets.

"This will not be achieved in the next two days, but we will continue the activity with all our strength. And we need to prepare for escalation, because the big ground operation is real and tangible," Barak said.

PRESSURE

Olmert has been under pressure from some of his cabinet members to launch a broader offensive in the Gaza Strip, especially after militants began firing longer-range Katyusha rockets at Ashkelon, a city of 120,000 people.

But Israeli officials have spoken publicly of the heavy loss of life such a campaign could cause on both sides.

Israeli commentators have also questioned whether military action could completely end rocket fire from the densely populated territory of 1.5 million Palestinians.

"I hear calls to wipe out entire (Gaza) neighbourhoods. I won't be involved in causing harm which in the short term can be beneficial but in the long term can be harmful," an official quoted Olmert as telling members of his Kadima party.

The offensive has taken Israeli troops deeper into the Gaza Strip and in larger numbers than at any time since Israel pulled troops and settlers out of the territory in 2005, 38 years after its capture.

Two Israeli soldiers were killed in fighting with Gaza militants on Saturday.

U.S. Secretary of State Condoleezza Rice is due to meet Abbas and Olmert this week to try to accelerate faltering negotiations which President George W. Bush hopes can forge a peace deal before he leaves office in January.

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