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			 The Israeli military, declining to comment specifically on the 
			attacks that flattened the Basha Tower and wrecked the Italian 
			Complex, said it attacked 15 "terror sites", including some in 
			buildings that housed Hamas command and control centers. 
 Hamas, the dominant militant group in the Gaza Strip, accused Israel 
			of an "unprecedented act of revenge against civilians" aimed at 
			deterring Palestinians from supporting the Islamist movement.
 
 A Hamas official, Osama Hamdan, said Egypt had proposed a new 
			ceasefire and was waiting for Israel to respond, after a five-day 
			truce and indirect Israeli-Palestinian talks in Cairo on a durable 
			Gaza agreement collapsed a week ago.
 
 Locked in a seven-week-old war and vowing to end rocket fire from 
			the enclave, Israel has now attacked three of Gaza's most prominent 
			high-rise buildings since Saturday, when it destroyed the 13-storey 
			Al Zafer Tower.
 
 
			
			 
			No fatalities were reported in those bombings, which were preceded 
			by non-explosive warning missiles that sent residents fleeing. 
			Twenty people were wounded in the attack on the Italian Complex 
			building, and two others were killed in Israeli strikes elsewhere in 
			the Gaza Strip, medical officials said.
 
 Palestinian rocket fire damaged a house in the southern Israeli 
			coastal town of Ashkelon, lightly wounding 10 people police said. 
			Another rocket was intercepted over the Tel Aviv area, an army 
			spokeswoman said.
 
 Cairo's latest initiative, Palestinians officials said, called for 
			an indefinite halt to hostilities, the immediate opening of Gaza's 
			blockaded crossings with Israel and Egypt and a widening of the 
			enclave's fishing zone in the Mediterranean.
 
 Under a second stage that would begin a month later, Israel and the 
			Palestinians would discuss the construction of a Gaza sea port and 
			an Israeli release of Hamas prisoners in the occupied West Bank, the 
			officials said.
 
 Both Israel and Egypt view Hamas as a security threat and are 
			demanding guarantees that weapons will not enter the economically 
			crippled territory.
 
 An Israeli official speaking on condition of anonymity said Israel 
			would consider an Egyptian proposal once assured that Hamas was 
			ready to accept it.
 
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			Speaking on Al-Arabiya television, Hamdan said: "Returning to 
			negotiations must be linked to a position that includes guarantees 
			and clear Israeli concessions." U.N. RESOLUTION
 Separately, the United States has begun preparing its own draft 
			outline for a proposed United Nations resolution to demand a 
			ceasefire, working alongside European powers and Jordan on a final 
			draft, diplomats said.
 
 Palestinian health officials say 2,125 people, most of them 
			civilians, including more than 490 children, have been killed in 
			Gaza since July 8, when Israel launched an offensive with the 
			declared aim of ending the rocket salvoes.
 
 Sixty-four Israeli soldiers and four civilians in Israel have been 
			killed.
 
 Thousands of homes in the Gaza Strip have been destroyed or damaged 
			in the conflict. Nearly 500,000 people have been displaced in the 
			territory where Palestinians, citing Israeli attacks that have hit 
			schools and mosques, say no place is safe.
 
 Israel has said Hamas bears responsibility for civilian casualties, 
			because it operates among non-combatants. The group, it said, uses 
			schools and mosques to store weapons and as launch sites for 
			cross-border rocket attacks.
 
			 
			(Additional reporting by Ori Lewis and Allyn Fisher-Ilan in 
			Jerusalem, Louis Charbonneau at the United Nations, Writing by 
			Jeffrey Heller; editing by Ralph Boulton)
 
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