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Israel vows retaliation after Gaza rocket attack

Demand for swap of prisoners rejected

GAZA CITY -- Palestinian militants hit an Israeli city with a rocket from Gaza for the first time yesterday, causing no casualties but drawing a pledge of harsh retaliation from Israel while it was already in the midst of a military offensive.

Prime Minister Ehud Olmert called the rocket fire on the coastal city of Ashkelon a ``major escalation," coming just hours after a deadline set by the militants holding an Israeli soldier passed with Israel rejecting demands to release about 1,500 Palestinian prisoners. The militants said they would not harm 19-year-old Corporal Gilad Shalit -- if he is still alive. But they warned they would provide no further information about him, leaving his condition unclear.

The rocket flew 7 miles through the air and exploded in the courtyard of a school in Ashkelon, a city of 110,000 on Israel's coast north of Gaza. The school was empty at the time, and no one was hurt. School security cameras showed a large cloud of white dust rising from the point of impact.

Early today, Israeli aircraft fired missiles at a Hamas camp in southern Gaza, Palestinians and the Israeli military said. Israeli warplanes also struck the Palestinian Interior Ministry for the second time in a week, Palestinian witnesses and the Israeli military said. There were no immediate reports of casualties at either the Hamas camp or the ministry.

Though militants have fired many of the small, homemade rockets in the direction of Ashkelon, this was the first one to hit the heart of the city, displaying a longer range than most previous ones and bringing the threat of rocket barrages to a major Israeli population center for the first time.

Zeev Schiff, veteran military analyst for the respected Israeli Haaretz daily newspaper, wrote that the rocket attack was ``an unequivocal Hamas invitation to war."

In the hours before the rocket attack, Israeli forces were already operating in northern Gaza looking for tunnels, explosives, weapons warehouses, and other facilities used by militants, the area army commander said.

However, the troops stayed outside Palestinian towns, as they have since Israel started its offensive in Gaza a week ago. Olmert indicated that might change in response to the rocket attack on Ashkelon.

``For this attempt that was meant to harm Israeli civilians who live in the sovereign borders of Israel, there will be far-reaching consequences," Olmert warned at a US Independence Day celebration at the home of Richard Jones, the US ambassador to Israel. ``The Hamas organization will be the first to feel this."

Earlier yesterday, before the attack on Ashkelon, Olmert made a quick visit to Sderot, the Israeli town just outside Gaza that has been the main target of the Palestinian rocket squads. He pledged to work to stop the barrages.

Olmert and Defense Minister Amir Peretz decided yesterday to gradually step up the operation in northern Gaza, defense officials said.

Though thousands of troops took up positions in southern Gaza last week, a large-scale raid into the north would probably spark intense, bloody fighting.

Israel launched the Gaza offensive, punctuated by nightly airstrikes, to put pressure on Shalit's kidnappers -- Hamas-affiliated militants who seized the soldier in a cross-border raid on June 25. But the militants responded with defiant demands for the release about 1,500 prisoners from Israeli jails.

On Monday, the Hamas-affiliated militants set a 6 a.m. Tuesday deadline for Israel to begin complying and they implied they would kill Shalit if it refused. But the deadline passed without event, and a spokesman for the Army of Islam, one of the three groups that kidnapped Shalit, said the militants ``decided to freeze all contacts and close the case on this soldier."

``We will not give any information that will give the occupation good news or reassurance," said the spokesman, Abu Muthana. But, he added, ``We will not kill the soldier, if he is still alive."

Hours after the deadline passed, Olmert was defiant.

``We won't negotiate with terror elements, and we won't let anyone believe that kidnapping is a tool to bring Israel to its knees," he said.

Olmert said he ordered the army to push forward with efforts ``to strike terrorists and those who sent them and those who sponsor them. . . . None of them will be immune."

The threat was clearly meant for Syria, where Israeli warplanes buzzed President Bashar Assad's summer residence last week.

Israel holds Syria responsible for Shalit's abduction because it hosts Hamas' top leader, Khaled Mashaal. Israel says Mashaal ordered the kidnapping.

Despite the tough public line, Israeli officials have privately said they would consider other options to get the soldier back. Israel has released prisoners before in lopsided exchanges for captured citizens or the bodies of soldiers killed in battle.

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