IDF forces trying to repair the wall of Tarmit base came under heavy Palestinian fire. The IDF returned fire, and also advanced about 100 meters into Palestinian-controlled territory, destroying more than a dozen structures that provided cover to Palestinian shooters. 3 Palestinians were reportedly killed in the ensuing firefight Thursday near Rafah, in addition to a Palestinian teenager killed in clashes on Wednesday. Two other Palestinians were killed in separate incidents on Thursday.

The U.S. State Department sharply rebuked Israel for the reprisal action, demanding an end to the incursion, home demolitions and calling on the government to refrain from "provocative" actions. "We've called on the Israeli government to halt the demolition of Palestinian homes and to halt the incursions by Israel Defense Forces into Palestinian-controlled areas," said State Department spokesman Richard Boucher.

"We think it's important for Israel to refrain from provocative acts that can only escalate tension and undermine efforts to bring about a lasting halt to violence. For their part, we continue to call upon the Palestinian authorities to undertake sustained and effective steps to preempt violence, to arrest those responsible for planning and conducting acts of violence and terror." Boucher said the United States had conveyed a similar message to the Israeli government in private contacts on Thursday.

A Palestinian Authority spokesman accused Israel of trying to undermine the cease-fire agreement brokered on Wednesday. "It's an attempt by the Israeli army and some people inside the Israeli government to blow up and destroy the results of the Peres-Arafat meeting and we hold the Israeli government responsible for this dangerous escalation," said Arafat aide Nabil Abu Rudeineh.

The IDF stressed that the reprisal operation took place in the "pink area" stipulated in the Oslo Agreement as an area for military installations under full Israeli security control. IDF Radio quoted military sources as claiming that three of those killed were involved in laying the explosive charge.

Reports from the Peres-Arafat ceasefire meeting indicate that it was a difficult meeting. Peres, in a subsequent meeting with Israeli journalists said that the talks were "serious." Israel Radio reported Wednesday that the Palestinians raised a last minute demand that Israel should vacate Orient House in Jerusalem, confiscated after the Sbarro bombing in Jerusalem in August. The planned Peres-Arafat joint announcement and press conference never took place.

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