JERUSALEM (Islamweb & News Agencies) - Bullets and mortar bombs hit an internationally illegal Jewish settlement on the edge of Jerusalem overnight despite an Israeli occupation army's thrust into a nearby Palestinian-ruled town that was intended to silence such shooting.Israeli troops had reoccupied parts of the West Bank town of Beit Jala early Tuesday to try to end months of firing on the Gilo settlement, which Israel terms a neighborhood of Jerusalem.(Read photo caption below)
The United States, Israel's staunchest ally, called for Israel to withdraw from the town near Bethlehem.
MORTAR BOMBS ON GILO
Despite the Israeli military presence in parts of Beit Jala, Resistance men periodically shot across a valley at Gilo and fired at least three mortar bombs, damaging cars and buildings. Only one mortar bomb had previously hit Gilo in 11 months of the on-going Palestinian uprising against Israeli occupation of Palestinian territory.
Police toured Gilo with loudspeakers urging residents to stay indoors because mortar bombs were falling.
Bullets also struck an Israeli television crew van in Gilo during an interview with Jerusalem Mayor Ehud Olmert.
The United States demanded that Israel leave Beit Jala.
Arafat accused Israel of attacking Christian holy places in Beit Jala, which is near Bethlehem, the birthplace of Jesus.
THE INTIFADHA MARCHES ON
In the Gaza Strip, Israeli tanks and bulldozers rumbled into the Palestinian-ruled Deir al-Balah area in the early hours of Wednesday, destroying a house as a Palestiniaian Resistance men with light arms put a stiff Resistance to the intruders. The Israelis later withdrew. 
Palestinian Resistance men seriously wounded an Israeli guarding the Jewish settlement of Hashmonaim, about six miles west of the West Bank city of Ramallah. 
In other intifadha confrontations in the West Bank and Gaza, Israeli occupation troops shot dead two Palestinians. In southern Gaza, Israeli tanks destroyed a police post, Palestinian security officials said.
In Hebron, Palestinian witnesses said Resistance men had fired seven mortar rounds at the Jewish settlement of Harsina -- the first time Palestinians in the predominantly West Bank city were reported to have used mortars.
At least 540 Palestinians and 155 Israelis have been killed since a Palestinian revolt against Israeli occupation flared last September after peace talks had become deadlocked.
The latest confrontations erupted amid Palestinian fury at Israel's assassination Monday of Abu Ali Mustafa, leader of the Popular Front for the Liberation of Palestine (PFLP).
More than 20,000 mourners vowed revenge at Mustafa's funeral in the West Bank town of Ramallah, chanting: ``Our retaliation is on its way. Expect Resistance bombings and more bullets.''
Mustafa, a founder of the PLO, was the highest-ranking Palestinian politician killed by Israel since Khalil Wazir, better known as Abu Jihad, was assassinated in Tunis in 1988.
Israel accused Mustafa of masterminding bomb attacks, but Palestinian President Yasser Arafat said his killing, in a pinpoint missile attack, ``targeted the entire peace process.''
ITALY PUSHES FOR ARAFAT-PERES TALKS
Ruggiero told reporters he talked with the Palestinian leader on how to arrange an Arafat-Peres meeting.
Arafat ``has confirmed that he is ready to accept the dialogue and the conversations with Mr. Peres and to continue the preparation of this meeting, which has to be well prepared because we cannot afford a failure of this meeting,'' he said.
Ruggiero, on a two-day trip to the Middle East, was to meet Israeli Prime Minister Ariel Sharon later Wednesday.
PHOTO CAPTIONS:
An Israeli occupation soldier peers out of a tank as the Israeli occupation Army enters the West Bank town of Beit Jala, August 28, 2001. Palestinians liberated Beit Jala in 1995, but as dawn broke over the mainly Christian town, some residents found their streets were once again under Israeli occupation. (Magnus Johansson/Reuters)
- Aug 28 1:40 PM ET