Israel exerts diplomatic, military pressure on Hamas

JERUSALEM, Apr 9 (Reuters) Israel stepped up pressure on the Hamas-led Palestinian government today, formally severing all direct contacts with what it deemed a ''hostile entity'' and pounding security posts with shells in Gaza.

A statement from interim Prime Minister Ehud Olmert's office outlining the new guidelines said Israel would shun foreign officials who meet Hamas members during visits to the region.

Israel is concerned Hamas's contacts with Russia, China and other countries would undercut a boycott spearheaded by Washington to weaken the Islamic militant group.

''Israel will have no contact with the Palestinian Authority, which is a hostile entity, and will work towards preventing any entrenchment of the Hamas government's rule,'' the Israeli statement said.

But the communique, issued after a security cabinet meeting, did not rule out contacts with Palestinian President Mahmoud Abbas, whose Fatah faction was crushed by Hamas in parliamentary elections in January.

The decision limiting contacts came as the Israeli army kept up its heaviest strikes on the Gaza Strip since election victor Hamas took control of the Palestinian Authority in late March.

The army said it was targeting sites used by militants to fire makeshift rockets into Israel.

Palestinian security sources said one artillery shell landed on a small security base east of the northern Gaza town of Beit Hanoun. Another hit a security position to the south while a third shell hit a house.

One civilian was killed and 15 people, civilians and policemen, were wounded, the sources said. Israeli air strikes and artillery barrages have killed 15 Palestinians, mainly militants, since Friday.

Near the occupied West Bank city of Bethlehem, Israeli soldiers shot dead an armed Palestinian militant in a gun battle while trying to detain him, the army said.

NO CURBS Olmert, who won elections last month on pledges to impose final borders with or without Palestinian agreement, said there were no curbs on the army to respond to a surge of militant rocket fire on Israel.

''Anyone who fires a rocket and anyone who participates in terror acts will be dealt with without hesitation,'' Olmert told his cabinet.

In a sign of tensions among militant groups, the political leadership of Islamic Jihad said it had overruled plans by its armed wing to suspend rocket fire from northern Gaza into Israel for one week.

Hamas is sworn to destroy Israel but has largely abided by a year-old ceasefire that other groups have ignored.

Israel has vowed not to negotiate with Hamas unless it recognises the Jewish state's right to exist, renounces violence and accepts interim peace deals. Hamas says talks with Israel would be futile.

Palestinian political analyst Hani Habib said Hamas faced a dilemma.

''It is neither able to feed the people nor defend them,'' he said, referring to decisions by Israel, the United States and the European Commission to halt direct aid to the new government.

While Israeli officials described the prohibition on dealings with the Palestinian government as a blanket ban, Israeli sources said contacts would be permitted in cases of humanitarian emergencies, such as combating bird flu.

Israel also said it would not block humanitarian aid from reaching the Palestinian people, so long as it did not go directly to the Hamas-led administration.

REUTERS SRS RAI2149