Palestinian gunmen in an attack on a West Bank Jewish settlement, Israeli military officials said.

Among the wounded settlers was apparently the three-year-old daughter of the slain man while the other was a visiting Israeli. One of the Palestinians carrying out the attack was reportedly shot dead, while the other escaped towards the nearby West Bank city of Hebron. Military sources said that "a manhunt" was under way to find him.

The Palestinian gunmen reportedly managed to infiltrate the settlement of Kiryat Arba outside the flashpoint of Hebron and call a settler family to the door before coming under fire from Israeli troops and other Jewish settlers.

HAMAS "RESPONSIBLE"

Hamas, a militant organization, claimed responsibility for the attack, saying it was carried out "to avenge the demolition of homes, the closure on the territories and Israel’s policy of assassinations," the Arab Internet network Albawaba.com reported.

It also said that Hamas would "continue attacks against the Israeli occupation." The two deaths bring the toll from the 28-month-old Palestinian uprising to 2,872, including 2,132 Palestinians and 684 Israelis, according to official estimates.

Earlier in the day, Hamas rejected calls to stop attacks against Israeli targets. "Hamas officially informed Egypt of its final answer: our position is against ending the resistance and abiding by a one- year truce," the organization reportedly said.

FAMILIES REPLACED

Arab media said the attack came after Israeli forces demolished 16 Palestinian houses and also evacuated 40 Palestinian families from their houses on charges of taking part in Intifada, or uprising, activities.

The Israeli troops reportedly also arrested more than 20 suspected Palestinian militants during operations in several Palestinian cities gatherings in the West Bank and Gaza.

Earlier in the week troops moved into Hebron to close down two Islamic universities they believed were actively promoting terrorist activities, uncovering pamphlets, posters, school-books, tapes, and wall slogans glorifying the culture of suicide killing.

UNIVERSITIES RAIDED

"The Palestinian Authority Education System incites terror and encourages murder," the International Christian Embassy Jerusalem News Service quoted a senior security source as saying in response to the (university) raids.

"These colleges endorsed terror and acts of vengeance as part of their curriculum." The closure of Hebron Islamic University and Hebron Polytechnic’s old and new campuses comes in response to a wave of bombings and killings that Israel believes have been coordinated through the universities by militant Islamic terror groups.

Tensions have also increased in recent days as thousands of Palestinians expressed their support for Iraqi President Saddam Hussein, the Cable News Network (CNN) and other media said. Critics and some opposition politicians have accused Israeli Prime Minister Ariel Sharon of fuelling tensions ahead of upcoming national elections on January 28.

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