Israeli troops shot dead a 15-year-old Palestinian youth on Wednesday while raiding a Gaza Strip refugee camp, Palestinian medics and witnesses said.
Palestinian medics and witnesses said the 15-year-old, who was unarmed, was killed by a tank shell that wounded 11 others.
Palestinians said the Israeli incursion followed Palestinian mortar shelling of a Jewish settlement near Rafah.
**Palestinians Disappointed by Bush's U.N. Speech***
George Bush's perceived portrayal of Yasser Arafat Tuesday as a leader who has betrayed his people's cause will only spur Israel to hold a hard-line against the Palestinians, a Palestinian official said.
In a U.N. address focused on Iraq Bush called on both Israel and the Palestinians to carry out commitments they made under a stalled U.S.-backed peace plan.
But in an apparent reference to Arafat -- whom the United States has sought to sideline -- Bush said the Palestinian cause was being "betrayed by leaders who cling to power by feeding old hatreds and destroying the good work of others."
"The Palestinian people deserve their own state and they will gain that state by embracing new leaders committed to reform, to fighting terror and to building peace," Bush said, echoing remarks he has made in the past.
Palestinian Labor Minister Ghassan Khatib called Bush's remarks unconstructive.
"It does not serve the cause of democracy when President Bush does not distinguish between a president who 'clings to power' through elections and one who does so by other methods," Khatib said. Palestinians elected Arafat president in 1996.
"The hatreds President Bush is speaking about are a result of the occupation and Israeli violence," he told Reuters.
"One of the bad things about such statements is that it encourages Israel to continue diminishing the rights of the Palestinian people and their leadership," Khatib added.
There was no immediate Israeli comment on Bush's speech.
The United States and Israel accuse Arafat of fomenting violence in a three-year-old Palestinian uprising for statehood, an allegation he denies.
After Palestinian bomb attack killed 15 Israelis two weeks ago, Israel issued an open-ended threat to "remove" Arafat, and the United States vetoed a U.N. Security Council resolution aimed at blocking his possible expulsion.
**Israel to Free 400 Prisoners in Hezbollah Exchange***
Israel is to release some 400 Palestinian and Arab detainees next week as part of a long-awaited prisoner exchange deal with the Lebanese Hezbollah militia, Palestinian newspapers reported on Tuesday.
Citing an "informed Palestinian source", Al-Quds daily said that the German-mediated exchange would "probably" take place after the end of Jewish new year festivities this weekend.
Some 185 Lebanese, Syrian and Jordanian prisoners would be released as part of the deal while the rest would be Palestinian, the report said.
"All the Palestinian factions have presented (to Hezbollah) lists with names of prisoners they want to be released," the source added.
Marwan Barghuti, the head of Palestinian leader Yasser Arafat's Fatah movement in the West Bank, and senior Hamas official Sheikh Hassan Yussef, are among the names on the list.
Israel's Interior Security Minister Tshai Hanegbi denied that Barghuti would be part of any exchange deal.
"He will stay in prison for dozens of years," Hanebi told public radio with reference to Barghuti, who is on trial but has yet to be convicted.
But the Ramallah-based Al-Ayyam newspaper said it was "nearly certain" that Barghuti and Yussef would be among those released.
Al-Ayyam, citing Arab and Palestinian sources, said that the exchange would take place "in the coming days".
Expectation of a deal has risen sharply recently.
Hezbollah leader Hassan Nasrallah said on Monday that there was "great hope" of a deal "soon" while Israel's Foreign Minister Silvan Shalom said last week that he believed Hezbollah was "serious" about reaching a new agreement on prisoners.
In October 2000, Hezbollah captured three Israeli soldiers -- whom Israel believes are dead -- in a disputed border area. They also seized businessman Elhanan Tanenbaum, a reservist colonel who the guerrilla group alleges was an intelligence agent.
For its part, Israel is said to be holding 16 Lebanese, including two senior Islamic figures, though Lebanese media on Monday published a list of 19.
Hezbollah, backed by Lebanon's powerful neighbor, Syria, and Shiite heavyweight Iran, was instrumental in the guerrilla war that led to the May 2000 Israeli troop pullout from southern Lebanon after 22 years of occupation.
**PHOTO CAPTION***
A Palestinian youth weeps over the body of 15-year-old Mohammed Hamdan at the Al Najar Hospital in the Rafah Refugee Camp, in southern Gaza Strip, early Wednesday, Sept. 24, 2003. Hamdan was killed and 14 other Palestinians wounded when Palestinian militants and Israeli forces clashed Wednesday in the southern Gaza Strip, hospital officials and eyewitnesses said. (AP Photo/Khalil Hamra)