Bloodiest day as Israel kills 61 in Gaza

GAZA (Reuters) - Israeli forces killed 61 people in theGaza Strip on Saturday, the bloodiest day for Palestinianssince an uprising against Israeli occupation began in 2000.

Israel, which lost two soldiers, seemed ready to press homeits fiercest air and ground assault since it pulled troops backto the borders of the coastal enclave in 2005. It blamed HamasIslamist rockets for provoking four days of fighting, in whichdozens of civilians have been among the 96 Palestinians killed.

The U.N. Security Council prepared to meet in emergencysession. A U.N. official in Gaza appealed for internationalaction to end the "inhuman suffering" of its 1.5 million peopleand said killing women and children would not help Israel.

Palestinian President Mahmoud Abbas, a sworn enemy of theIslamist militant group Hamas which took control of Gaza fromhis forces in June, called the attack "more than a holocaust".

Aides to Abbas said fighting could wreck new U.S.-backedpeace talks. Israeli officials said Palestinian chiefnegotiator Ahmed Qurie called his Israeli counterpart, ForeignMinister Tzipi Livni, to call off a meeting due on Monday. ButAbbas's aides said no decision to suspend the process had beentaken.

At least 30 of the dead were civilians, among them womenand children, said Palestinian doctors who worked round theclock.

Two Israeli soldiers were killed and seven wounded, thearmy said -- its first deaths in Gaza since October. As troopsbacked by tanks pushed deep into areas from where rockets arefired, they met heavy gunfire and landmines, residents said.

Another 48 rockets hit Israel, wounding several people. AnIsraeli civilian was killed on Wednesday, the first since May.

Israeli Defence Minister Ehud Barak said Israel was "nothappy" civilians were being hurt but blamed Hamas for firingrockets from built-up areas and said it would "pay the price".

U.S. Secretary of State Condoleezza Rice is due to visitAbbas and Israeli Prime Minister Ehud Olmert next week.Palestinian negotiator Saeb Erekat said: "If Israeli aggressioncontinues, it will bury the peace process in the rubble."

A spokesman for Israel's chief negotiator said: "WhatIsrael is doing in Gaza is fighting terror and it will becontinued."

At least 30 gunmen were killed, medical staff and Hamassaid. Among targets was the empty office of Hamas leader IsmailHaniyeh, whom Abbas fired as his prime minister after theIslamists routed his Western-backed forces in Gaza.

Medical staff said four people living nearby were wounded.

"I DON'T WANT TO DIE"

"Uncle, I don't want to die. I want my dad," a toddlerscreamed as doctors tried to treat burn wounds across her bodyin Gaza's main Shifa hospital. The girl had been in a housewhich the Israeli army said was used to store and make weapons.

One of the dead civilians was a mother who was preparingbreakfast for her children when she was hit by gunfire,relatives and medical workers said. One missile slammed into acrowd of Palestinians, killing four civilians, medics said.

In Damascus, exiled Hamas leader Khaled Meshaal said: "Isay to the Zionist leaders, if they decided to raid Gaza, theywill be fought not by dozens ... but ... by 1.5 millionpeople."

A senior U.N. official in Gaza, John Ging, appealed toworld leaders to stop the fighting:

"Killing Palestinian women and children will not bringsecurity to the people of Israel," said Ging. He also saidHamas's rocket fire would not achieve Palestinians' goals.

Daily rocket fire for months has put Olmert under pressurefrom voters to act. But the government, chastened by a costlywar against Hezbollah guerrillas in Lebanon in 2006, is wary ofan outright invasion of the densely populated coastal region.

Olmert's deputy, Vice Premier Haim Ramon, said: "We need toact with all our might, but without taking steps that will hurtus more than help us -- by which I mean reoccupying Gaza."

He said the main targets would be those directly involvedin firing rockets and the broader Islamist leadership in Gaza.

Washington has urged Israel to "consider the consequences".

Abbas's power is now restricted to the Israeli-occupiedWest Bank. While he would shed few tears if Israel destroyedHamas, he risks losing already patchy support in the West Bankif he is not seen to be speaking out against the Israelimilitary action.

Reflecting the depth of factional rifts among Palestinians,Abbas rejected a charge by Meshaal that he was giving cover toIsrael. He declared Sunday a day of national mourning.

(Additional reporting by Ari Rabinovitch, Adam Entous,Avida Landau and Alastair Macdonald in Jerusalem and AliSawafta and Mohammed Assadi in Ramallah)

(Writing by Alastair Macdonald, editing by Ralph Gowling)