Israeli troops, Palestinian gunmen clash in Jenin

A 12-year-old boy standing at the gate to his home and a man inside his house were wounded in the shooting in Jenin, on the second day of the Israeli operation, witnesses said.

Israeli Defence Minister Shaul Mofaz, effectively rejecting a call this week by Palestinian President Yasser Arafat for a cease-fire, pledged to keep up the pressure on militant groups spearheading a three-year-old uprising for statehood.

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Mofaz told Israel Radio that Arafat's choice for prime minister, Ahmed Qurie, can prove himself a peace partner only by cracking down on those organizations once he takes office.

"As long as Arafat continues to be the Palestinian leader, I don't think there's a chance to move forward in the peace process," Mofaz said.

"On the other hand, there's a desire to choose a Palestinian prime minister... When (he) is elected, he will have to prove himself by his actions -- first of all, the dismantling of terrorist infrastructures," the hawkish defense chief said.

Mofaz made the remarks after President Bush said on Thursday a US-backed Middle East peace plan, known as the road map, had stalled. He blamed what he called Arafat's failed leadership for the setback.

Palestinian Labour Minister Ghassan el-Khatib said Bush's comments were "not constructive."

The decision by Arafat's Fatah faction to leave naming the 24-seat cabinet to the president and Qurie ensures Arafat, whom the United States hoped to sideline, will play a major role in shaping the next government.

Arafat and Qurie planned to consult in the coming days on the composition of a cabinet which Palestinian officials said would be formed next week.

The cabinet will include a US favorite, reformist Finance Minister Salam Fayyad, the officials said. A supporter of Hamas, a fundamentalist Islamic group that has killed hundreds of Israelis in suicide bombings, was also slated for a post.

Qurie was named prime minister after Mahmoud Abbas resigned saying his efforts to promote the road map had been undermined by Arafat and Israel.

Last week, Israel issued an open-ended threat to "remove" Arafat after suicide bombings killed 15 people. It accuses him of fomenting violence, an allegation he denies.

With a curfew in effect in Jenin, the army demolished the family home of Shahdi Toubasi, a Hamas suicide bomber who killed 15 Israelis in a restaurant in northern Israel last year.

In Jerusalem, Israel took aim at suspected militants of its own, charging a Jewish settler with membership in what it called a terrorist organization that has killed eight Palestinians in a series of attacks. A lawyer for suspect Shahar Dvir Zeliger denied the accusation.

Israeli security sources have said an underground Jewish cell that goes by several names is active in the West Bank. Police announced the discovery of an arms cache near a settlement which they said was used by the cell's members.

But citing insufficient evidence, Israeli authorities recently released nine settlers suspected of involvement in shootings that have killed eight Palestinians, including a baby.

Settlers, living on occupied land in the West Bank and Gaza, have been frequent targets of attacks by Palestinian gunmen.

Meanwhile, Israel's defense minister said yesterday Palestinian Prime Minister-designate Ahmed Qurie can prove himself a peace partner only by launching a crackdown on militant groups once he takes office.

"As long as (Yasser) Arafat continues to be the Palestinian leader, I don't think there's a chance to move forward in the peace process," Shaul Mofaz told Israel Radio.

"On the other hand, there's a desire to choose a Palestinian prime minister... When (he) is elected, he will have to prove himself by his actions -- first of all, the dismantling of terrorist infrastructures," the hawkish defense chief said.

Mofaz made the remarks after President Bush said on Thursday a US-backed Middle East peace plan, known as the road map, had stalled. He blamed what he called Arafat's failed leadership for the setback. Palestinian Labor Minister Ghassan el-Khatib said Bush's comments were "not constructive."