There can be no military solution to this conflict

US Secretary of State Colin Powell

Israeli troops invaded Gaza on Monday in retaliation for a mortar attack on an Israeli town. A military official warned that the army could stay there for months.

However, the Israeli forces withdrew 24 hours later after the American Secretary of State, Colin Powell, criticised the operation as "excessive and disproportionate".

The United States welcomed the withdrawal, warning Israel to avoid overreacting to provocations.

Israel rejected speculation that the withdrawal was prompted by Mr Powell's criticism.

Defence Minister Binyamin Ben-Eliezer said the move had been decided in advance, before the US statement. The Israeli army knew that its troops "were slated to pull out as soon as it became dark," he said.

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Elsewhere violence continued.

Late on Tuesday, new fighting broke out between Palestinians and Israeli soldiers in and around Bethlehem in the West Bank.

During the day, three young Palestinians were killed by Israeli fire in the West Bank and Gaza Strip.

US criticism

Using unusually strong language, the United States described Israel's move into Gaza as "excessive and disproportionate", although it acknowledged that it had been provoked.

Israeli soldiers set up new guard posts

Mr Powell said in a statement that the fighting threatened to escalate into a broader conflict and called on Israel to pull its forces out of Palestinian-ruled Gaza.

"We call upon both sides to respect the agreements they have signed. For the Palestinians, this includes implementing their commitment to renounce terrorism and violence", Mr Powell said.

"For the Israelis, this includes respecting their commitment to withdraw from Gaza according to the terms of the agreements signed by Israel and the Palestinians", he added.

New Israeli policy

The move into the Beit Hanoun area of the Gaza Strip was the first time Israeli troops had entered a Palestinian-controlled area for any length of time since Gaza was handed over to the Palestinians in 1994 in line with the Oslo peace accords.

A number of Palestinians were injured during the Israeli move into Gaza

BBC Jerusalem correspondent Hilary Andersson says Washington's reaction may have brought the conflict back temporarily from the brink of further disaster.

But she warns that the key point is that Israel has made it clear that it has embarked on a change of policy.

Israel's new policy is that it still retains the right to move into Palestinian areas and to stay there when and where it sees fit, our correspondent says.

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