The Palestinians and Syria yesterday accused Israel of turning its back on peace after it tried to assassinate a top Hamas leader in Gaza and moved ahead with plans to build hundreds of new homes in the occupied Golan Heights. "Our hand is still extended for a peace of the brave, we strongly believe in this peace and this belief will not wane despite the grief and suffering endured by our people," Palestinian leader Yasser Arafat said in a televised address, as thousands of supporters took to the streets of Gaza City to mark the 39th anniversary of his Fatah movement. "This Israeli government does not want the peace of the brave, does not work towards resuming the peace process and does not want to implement the roadmap or come back to the negotiations table." Arafat's address followed an Israeli air strike in Gaza City late on Tuesday which failed to kill its intended target, Jamal Jarah, a military leader of Hamas. It was the first targeted killing operation against Hamas for some three months and was greeted with a defiant response. "This will not stop the resistance of our people or change the position of Hamas which advocates the pursuit of battle until the end of the occupation and the recovery of the rights of the Palestinian people," leading Hamas figure Ismail Haniya said. Sharon also dealt a blow to hopes of a thaw in relations with Syria with a move to build hundreds more homes in the Golan Heights. Official sources said a cross-ministerial commission had ratified a plan to speed up the building of 900 homes which would increase the Jewish population from 10,500 to around 15,000 over three years. But high-ranking officials insisted the 56 million US dollars project predated a recent Syrian peace overture and was not meant as a rebuff to Syrian President Bashar Al Assad. However, Syria reacted angrily, calling it a "flagrant expression of (Israel's) opposition to peace." The plan "blocks the road to any effort or initiative toward achieving a just and comprehensive peace in the region," a Syrian government spokesman said yesterday. In Washington, US State Department spokesman Adam Ereli reacted to the report by saying, "Israel should halt settlement activity." **Anti-wall demonstrators shot in Israel*** Israeli troops have shot and wounded at least 11 people who were involved in a protest at one of the building sites for the controversial West Bank wall. The incident outside a Palestinian village near Ramallah was the second time in five days that the army has fired at anti-barrier demonstrators. On December 26 soldiers injured an Israeli and an American with live bullets. Three Israelis, two Swedes and an American were arrested earlier today at the protest. Palestinian medics said 20 Palestinians were hit by rubber bullets and taken to hospital while an Israeli woman was also wounded. The vast barrier cuts land from West Bank territory Palestinians see as part of a future state. **PHOTO CAPTION*** A group of Israeli settlers pray at Gamla on Golan Heights. (AFP/File/Menahem Kahana)