Israeli air strike kills 2 gunmen in Gaza-medics

GAZA, May 30 (Reuters) An Israeli air strike killed two Hamas militants in the Gaza Strip today, medical workers said, as Israel kept up pressure on the Islamist group to end cross-border rocket attacks.

An Israeli military spokeswoman had no immediate comment on what ambulance crews and local residents said was a missile attack by a drone on a group of gunmen in the northern part of the territory near Jabalya refugee camp.

In addition to the two members of Hamas's Izz el-Deen al-Qassam Brigades killed in the strike, several people were wounded and a house was damaged.

At a news conference yesterday, Palestinian President Mahmoud Abbas proposed a new truce between militants and Israel and said he would meet Israeli Prime Minister Ehud Olmert next week, keeping alive a US-backed dialogue despite the violence.

Olmert, in a speech to Israel's parliament, said: ''We have no intention of reaching any kind of settlement, neither with Hamas nor with Islamic Jihad. We will hit them and continue to hit them.'' Hamas and other militant groups have fired more than 270 rockets from Gaza, killing two Israelis, over the past two weeks.

Israel has hit back mainly with air strikes, killing more than 40 Palestinians, most of them fighters.

Olmert's office said a meeting with Abbas was planned for next week but no specific date or location had been set. Israeli and Palestinian officials had previously said they expected the next meeting to take place in the West Bank city of Jericho.

Abbas, who also heads the Fatah movement that formed a unity government with Hamas two months ago, last met the Israeli leader on April 15 as part of US-brokered talks that were supposed to take place every two weeks.

DIALOGUE DELAYED The dialogue, which has focused on aspects of a future Palestinian state, has been delayed by Palestinian internal violence, Israeli-Palestinian fighting and Olmert's uncertain political future following an inquiry critical of his handling of last year's costly Lebanon war.

''They will be discussing a political horizon, meaning the composition of a future Palestinian state. They will not be discussing final status issues,'' said Israeli government spokesman David Baker.

In an air strike yesterday, Israel destroyed several buildings at a Hamas training base in the Gaza Strip. No casualties were reported.

Two armed militants were also killed in separate raids by Israeli undercover troops in the occupied West Bank, Palestinian hospital staff and the Israeli army said.

At the news conference with European Parliament President Hans-Gert Pottering, Abbas proposed a truce that would initially cover Gaza and be extended within a month to the Israeli-occupied West Bank.

Hamas has said any ceasefire must include an end to Israeli raids in the West Bank. Israel has rejected similar proposals in the past, saying West Bank raids were critical to foiling Palestinian attacks.

REUTERS CS SBA BST0520