By Nidal al-Mughrabi
GAZA (Reuters) - Israeli forces killed 60 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 assault since it pulled troops back to the bordersof the coastal enclave in 2005. It blamed Hamas Islamist rocketfire on Israel for provoking four days of fighting, in whichdozens of civilians have been among the 95 Palestinians killed.
The U.N. Security Council prepared to meet in New York anda U.N. official in Gaza appealed for international action toend the "inhuman suffering" of its 1.5 million people.
A day after an Israeli official warned Gazans of a "shoah"-- which typically means holocaust -- Palestinian PresidentMahmoud Abbas, a sworn enemy of Gaza's Hamas rulers, called it"more than a holocaust".
Aides said it may wreck peace talks that were revived withU.S. backing after collapsing in 2000.
At least 30 of the dead were civilians, among them womenand children, said Palestinian doctors working round the clock.
Two Israeli soldiers were also killed and seven wounded,the army said -- its first deaths in Gaza since October. Dozensof Hamas rockets hit Israeli border areas, wounding severalpeople. An Israeli civilian was killed on Wednesday, the firstsince 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".
His deputy Matan Vilnai earlier said Gaza faced a "shoah"-- a holocaust or catastrophe. On Saturday, he said: "As longas events escalate the chances we will use greater forceincrease."
U.S. Secretary of State Condoleezza Rice visits Abbas andIsraeli Prime Minister Ehud Olmert this week. Palestiniannegotiator Saeb Erekat warned: "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."
More than 48 rockets and mortars landed on Saturday.
"I DON'T WANT TO DIE"
Of the 60 killed, 30 were fighters, according to hospitalstaff and Hamas, which routed Abbas's Western-backed forces inGaza in June.
"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 was injured 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 interrupt their weekend to stop the fighting:
"Killing Palestinian women and children will not bringsecurity to the people of Israel," he said, cautioning Israelicommanders about the risk of committing war crimes. He alsosaid Hamas's rocket fire would not achieve Palestinians' goals.
Palestinians said Israelis made their biggest and deepestincursion into Gaza in the 30 months since Israel pulled outsettlers and troops after 38 years of occupation. It has sinceimposed a blockade on Gaza's borders, drawing internationalcomplaints it is abusing its role as occupying power.
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".Bloodshed could derail U.S. hopes of a deal on a Palestinianstate this year before President George W. Bush steps down.
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)
