Palestinians mark 1948 uprooting with rallies

Solutions sought
Several months of negotiations have produced no tangible results, an Israeli prime minister weakened by a widening corruption probe is seen as unlikely to take daring political steps, and opinion polls show support for U.S.-backed Palestinian leaders seeking a peace deal is plummeting.

The Palestinian economy remains stagnant, despite a massive injection of foreign aid, in part because of Israel's reluctance to ease its restrictions on movement and trade.

Meanwhile, the separation of Hamas-run Gaza and the Abbas-ruled West Bank is deepening. The rivals are not on speaking terms, and the two territories that were to make up the future state are cut off from one another by Israeli travel bans.

"The level of hopelessness is very strong," said Palestinian pollster Jamil Rabih, adding that a recent survey indicates that half the Palestinians don't expect to see a state established within the next 25 years.

"There is nothing on the horizon for us," he added.

Mounting pressure to oust Hamas
The gloomy mood has been compounded by Israeli independence day parties. Last week, Israel celebrated the Hebrew calendar anniversary of its May 14, 1948 founding with fireworks, picnics and air force flyovers. A second round of celebrations followed this week, with the participation of Bush.

On Thursday, Bush addressed Israel's parliament pledging an unbreakable bond with the country while criticizing the deadly tactics of extremist groups and denouncing anti-Semitism.

"We believe that religious liberty is fundamental to civilized society, so we condemn anti-Semitism in all forms whether by those who openly question Israel's right to exist, or by others who quietly excuse them," Bush said.

Israel's government, meanwhile, came under mounting pressure to try to oust Hamas, after a rocket fired from Gaza hit a medical clinic in an Israeli shopping mall and seriously wounded four people, including a 2-year-old girl.

Israel's intelligence chief warned that within two years, Hamas would be able to extend the range of its rockets to 25 miles and put more Israeli cities at risk.

Wednesday's Grad rocket, which Israeli security officials said was made in Iran, hit the coastal city of Ashkelon, about nine miles from Gaza.

"We have to put an end to the Hamas government," Vice Premier Haim Ramon told Israel Radio. "If that decision is made, it will have clear military significance. The army knows what it has to do, it can be done in many ways that we are not doing now."

Defense officials were meeting Thursday to discuss a response to the latest rocket attack.

Prime Minister Ehud Olmert has held off ordering a major military offensive in Gaza, in part because Israel would not have a clear exit strategy and because the fighting would likely bring peace talks with the moderate Palestinian government in the West Bank to a halt.

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