Atef Abayat, Tanzim leader in the Bethlehem area, was killed Thursday afternoon when the jeep in which he was riding exploded. Two other passengers, both members of Arafat's Fatah faction, were also killed in the blast. Israel denied blame, but noted that Abayat was responsible for the recent deaths of 3 soldiers and 2 civilians. Palestinians claimed the blast was a "targeted killing" of Abayat, with conflicting reports as to the circumstances of the incident. Shortly afterwards Palestinians opened fire on the Jerusalem suburb of Gilo.

Earlier in the day, IDF armored corps and infantry troops took up positions on the outskirts of Ramallah and Jenin in Israel's first military response to Wednesday's assassination of Tourism Minister Rechavam Ze'evi. Palestinian officials announced that they would not extradite those responsible for the murder to Israel, in flagrant disregard to Israel's security cabinet ultimatum.

Israeli forces reinforced taut closures on Ramallah and Jenin. ynet reported that the IDF had advanced some 10 kilometers into Palestinian-controlled territories as forces surrounded Jenin. Palestinian eyewitnesses reported eight tanks rolling into the southern outskirts of the city, before stopping. Sporadic gunfire exchanges took place in Jenin but there were no casualties to Israeli troops, Army Radio reported.

Palestinian sources claimed that Riham Nabil, a ten-year-old girl, was killed and another girl was critically injured when Israeli tank fire hit the Ibrahimin School in Jenin. The IDF said it was looking into the report.

The IDF also advanced into areas northeast of Ramallah near El Bireh. Palestinian police and Force 17 positions were evacuated before the operation began and were taken over by the IDF. According to Palestinian sources, at least 10 tanks entered El Bireh and took up positions near the home of PA Chairman Yasser Arafat's deputy, Abu Mazen.

Palestinian policeman Marwan Ibrahim Sabri was reportedly shot dead as Israeli forces moved into El Bireh. There were reports that a 6-year-old girl was also killed in the city. This morning, light arms fire and explosions continue to be heard near the Ayosh junction outside the city.

Meanwhile, Israeli security forces reportedly made a number of arrests in El-Azariya, a Palestinian village near Abu Dis, east of Jerusalem. Israeli officers searched the home of Palestinian Authority Minister for Jerusalem Affairs Zayyad Abu-Zayyad. The village has been under curfew since the early morning hours, Israel Radio reported.

The IDF's actions in Ramallah and Jenin was interpreted as the first steps of Israel's response to Ze'evi's assassination. Military operations may spread to additional areas, Ha'aretz reported. A number of government sources said yesterday that Israel would need to strike fiercely at the Palestinians to deter terrorist organizations from launching similar assassination attacks in the future.

"I want to remind the public that after an attack of a diplomat at an embassy, a war broke out," Health Minister Nissim Dahan (Shas) said, in reference to the 1982 terrorist shooting of Israel's ambassador to London Shlomo Argov, which led to the invasion of Lebanon.

Opposition leader Yossi Sarid (Meretz) this morning attacked the IDF's actions in Ramallah and Jenin. "The government, in its decisions and actions, is leading us into a second Lebanon war," he said. "The impression is that Sharon wants to fulfill his original plan, and reconquer the entire West Bank and Gaza Strip. Ze'evi's murder is being used as an excuse to implement this plan," he added.

Cabinet issues ultimatum; Palestinians refuse to extradite
The security cabinet issued an ultimatum Wednesday night to the Palestinian Authority to immediately extradite those responsible for Tourism Minister Rechavam Ze'evi's assassination and to disarm and dismantle terrorist organizations operating freely in Palestinian-controlled territories. "Failure to meet these demands, which are grounded in signed agreements between Israel and the Palestinian Authority, will leave us with no choice but to view the Palestinian Authority as an entity supporting and sponsoring terror, and to act accordingly," the cabinet statement said.

Ha'aretz and other media sources reported that a seven-day deadline had been given to the PA to comply with the ultimatum, to coincide with the end of the traditional seven-day mourning period for Ze'evi. However Minister of Science, Culture and Sport, Matan Vilnai (Labor), told Israel Radio this morning that no deadline has been set for Israel's ultimatum.

Vilnai said he expected Israel to wait "a couple of days" and then the cabinet would meet again "to decide what to do next."

Israel reportedly knows the identity of Ze'evi's assassins and is expected to hand over the names to the Palestinian Authority today.

Abu-Zayyad told Channel Two television that "if indeed the people are inside PA territory, Arafat needs to arrest them and bring them to trial, but not to extradite them to Israel." Abu- Zayyad said the Palestinians are "interested in the cease-fire and in returning to the negotiations table," and commented that the bullets fired at Ze'evi were also aimed at breaking the truce between Israel and the Palestinians.

Palestinian security forces reportedly arrested three PFLP activists overnight in the Gaza Strip, but others, including the organization's spokesman Ali Jaradat, who had originally announced PFLP's responsibility for Ze'evi's assassination, were released after being called in for questioning.

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