Israeli soldiers killed a Palestinian gunman yesterday as they mounted a massive manhunt in the rocky hills of the West Bank for militants who ambushed a bus near a Jewish settlement, killing eight Israelis.
Separately, Palestinian leader Yasser Arafat denounced US demands that he be replaced and said he would run in January elections if the PLO leadership approves his candidacy.
The toll of Tuesday's attack reached eight yesterday after a premature baby delivered by Cesarean section after the attack died, doctors said. The boy, whose mother remained in serious condition, was believed to be the youngest victim of more than 21 months of fighting.
Heavy exchanges of fire continued yesterday between Israeli army forces and Palestinian gunmen in the area of the Jewish settlement of Emmanuel where the attack occurred. One Palestinian was shot and killed, military officials said. Three Israeli soldiers were injured, one seriously.
Israel called off a high-level meeting with Palestinians scheduled yesterday after the ambush, whose victims included an 8-month-old girl, her father and grandmother.
The well-planned ambush, claimed by three different Palestinian groups, came as officials from a Mideast policy planning group called the Quartet met in New York to try to come up with a formula to try to stop nearly two years of Israeli-Palestinian violence and spur resumption of peace negotiations.
Officials from the US, Russia, EU and UN expressed concern for the plight of the Palestinians but differed over the role of Palestinian leader Yasser Arafat.
Israel blamed Arafat for the attack at the entrance to the settlement of Emmanuel, which is located between the Palestinian towns of Nablus and Qalqiliya in the northern West Bank. Israeli forces control those towns and five others after launching a large-scale invasion.



