Olmert: No Cease-Fire Talks withHamas.

By Robert Berger (VOA-Jerusalem)

Israel has rejected a ceasefire offer from the Islamic terrorist group Hama= s, which rules the Gaza Strip. At the same time, Israeli settlement constru= ction is casting a shadow over new peace talks between Israel and the Pales= tinian Authority in the

Prime Minister Ehud Olmert said Israel has no intention of halting anti-ter= ror operations in Gaza, despite a truce offer from Hamas. Olmert told the C= abinet that "what is happening in Gaza is a real war between the Israeli ar= my and terrorist groups." And he said, "The war will continue."

Hamas offered a truce last week, after Israeli air strikes took heavy casua= lties among Palestinian militants. Olmert said Israel has no interest in h= olding negotiations with elements that refuse to accept the basic principle= s of the international community. He was referring to Hamas, which has reje= cted demands by the world powers to renounce violence and recognize Israel.

Hamas also appears to be divided between the military wing and the more pra= gmatic political wing of the movement, which offered the truce. Nizar Rayan= , who has close ties to the military wing, said a ceasefire is unacceptable= . Rayan told Hamas Television that there would not be a truce until all of = Palestine is liberated from the Jews.

Hamas seized control of Gaza six months ago, routing the forces of western-= backed Palestinian President Mahmoud Abbas. He now heads a more moderate go= vernment in the West Bank, which resumed peace talks with Israel this month= after a seven-year break.

But negotiations hit a glitch Sunday when Israel announced plans to build m= ore than 700 new apartments in disputed East Jerusalem and the West Bank. T= he Palestinians accused Israel of sabotaging the talks, saying settlement c= onstruction violates the internationally-backed "Roadmap" peace plan. Israe= l says it reserves the right to build in neighborhoods that will remain und= er Israeli control in any future peace agreement.