London and closed three Palestinian universities in response to its deadliest suicide attack in nearly a year that killed 22 people.

Earlier Israel send its helicopter gun ships into the Gaza Strip to fire missiles at two metal workshops who officials said were used to make weapons, which could be used in Sunday’s twin blasts that ripped through a Chinese takeout restaurant, a pub and shops.

The two suicide bombers, who were reportedly residents of the West Bank city of Nablus aged 19 and 20, left a scene of devastation in the area that was crowded with foreign workers. Among the dead were reportedly at least 11 Israelis and six foreign workers, including citizens of Romania, Bulgaria and Ghana.

There were initial conflicting claims of responsibility, but a splinter group of the al-Aqsa Martyrs Brigade carried out the attack, the Voice of America network said.

ARAFAT’S MOVEMENT

The Brigade is linked to Yasser Arafat’s Fatah movement. Israeli Prime Minister Ariel Sharon blamed the Palestinian leadership for the bombings, but the Palestinian Authority condemned them as a "terrorist attack."

It was the deadliest bombing since March, when 29 hotel guests were killed on the eve of the Jewish Passover holiday in a suicide attack that became known as the "Passover Massacre."

Analysts called Prime Minister Sharon’s response so far subdued adding that his options for retaliation are limited by Israel’s general elections this month and America’s eagerness to keep a lid on Mideast  violence ahead of a possible war against Iraq.

BRITAIN UPSET

Although Britain condemned the suicide bombings, it urged Israel to allow a Palestinian delegation to travel to London on January 13 and 14 to discuss a possible truce and Palestinian reform. Foreign ministers of Britain, Greece, Jordan, Saudi Arabia were to have attended, while Israel was not invited, reports said.

British Foreign Secretary Jack Straw called Foreign Minister Benjamin Netanyahu on Monday, asking that Israel rethinks the decision to ground the Palestinian delegation, but the Prime Minister declined, Netanyahu’s office said.

Palestinian Cabinet minister Saeb Erekat said Israel’s decision was shortsighted. "I think it’s like someone shooting himself in the foot," Erekat said. "How can such a decision give Israelis more security?"

POLICY DEFENDED

Sharon adviser Raanan Gissin defended the policy and said that the security Cabinet decided in principle to shut down three Palestinian universities — a measure last taken during the first Palestinian uprising from 1987-1993.

Several West Bank universities are seen as hotbeds for militants and the Palestinian Intifada, or uprising, which resumed mid 2000 after talks on Palestinian statehood broke down with Israel.

Gissin also suggested that Israel increase "pinpoint" attacks, referring to the assassination of Palestinian militants, which has been criticized by some human rights groups. He stressed that Israel has "the right to take such defensive measures to make sure that such horrible terrorist activities don’t take place."

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