Israel's Top General Denies Remarks

The Israeli media reported Monday that Israel's army chief advocated the ousting of Palestinian leader Yasser Arafat, and said most Israeli settlements would eventually have to be evacuated.

Later, army chief of staff Lt. Gen. Moshe Yaalon said those reports were a "complete distortion" of what he said.

In continuing violence, two Palestinians were killed Monday, one in an attempted attack on an Israeli settlement in Gaza and another during clashes with army troops in the West Bank town of Jenin.

Meanwhile, the recent killing of 12 Israelis in Hebron by Palestinian gunmen has prompted Israel to draw up a controversial plan for the divided West Bank city, reports CBS News Correspondent Robert Berger.

Israel plans to demolish 15 Palestinian houses in Hebron to create a safe passage for Jewish worshippers going to pray at the Tomb of the Patriarchs — a site holy to both Jews and Moslems. Palestinian officials say the houses belong to 30 families, and destroying them will spark more violence. Israel says the houses are empty, and it will do whatever is necessary to protect Jewish access to the holy places.

According to the Haaretz daily and Israel Radio, Yaalon said Arafat should be replaced. Yaalon made the remarks in Washington in a closed-door address at the Institute for Near East Policy, according to the reports.

Ya'alon said Monday that what he told the forum was that two years ago, the Palestinians understood that Israel intended to dismantle most of the settlements, and that despite this no agreement was achieved and the Palestinians opted for violence, Haaretz reported on its English-language Web site.

"I hope that this was not due to a language comprehension problem," he told new recruits.

"What I said was that in the year 2000, the Palestinians understood that Israel was willing to dismantle most of the settlements," Yaalon said. "Nevertheless, the agreement was not completed and the Palestinians began fighting, that's what I said."

Yaalon also denied using the word "expulsion" in reference to Arafat. He said he had told the forum that as long as Arafat is around it would be difficult to end terror and reach an agreement with the Palestinians.

In the off-the-record briefing to the institute, Yaalon reportedly used the phrase "killing him softly" regarding Arafat.

Prime Minister Ariel Sharon's Cabinet has held multiple debates on exiling Arafat, but has so far refrained from taking any such action.

Yaalon also said that Israelis and Palestinians know that "at the end of the day most of the settlements will be evacuated," Haaretz reported. More than 200,000 Israelis live in about 150 settlements in the West Bank and Gaza

In his remarks in Washington, Yaalon also criticized U.S policy in the Mideast, according to Haaretz. He said U.S. pressure on Israel to end a September siege on Arafat's Ramallah compound contradicted statements by President Bush, who has called for a new Palestinian leadership.

Yaalon said the U.S. pressure on Israel to back down had strengthened Arafat and weakened the stance of those calling for reform within the Palestinian Authority, Haaretz reported.

Arafat, speaking from his compound in Ramallah, accused Israeli Defense Minister Shaul Mofaz of pushing for stepped up military operations against the Palestinians. "There is a plan declared by Mofaz, which he has already started to implement as you see, with escalations every day," Arafat said.

Meanwhile, in Gaza, a Palestinian gunman disguised in Israeli army uniform opened fire on a military outpost near the Jewish settlement of Netzarim, before being shot dead by troops, said battalion commander Lt. Col. Tal Hermoni.

Hermoni said the gunman was carrying an assault rifle, a large amount of ammunition, and eight grenades, but was gunned down within a minute after he began shooting. The militant Islamic Jihad took responsibility for the attack.

In Jenin, Israeli troops shot and killed a Palestinian teenager and injured 23 others, two seriously, when hundreds of students began throwing stones at eight Israeli armored vehicles that entered the town, witnesses said.

Palestinian hospital officials said Motez Odeh, 16, was killed after he was hit by a bullet in the shoulder.

A tank patrolling the town was covered with paint, a trash can and large rocks on its turret. Another armored vehicle sported a metal railing that had been thrown on the vehicle.

Israeli army officials, speaking on condition of anonymity, said army troops attempting to enforce a curfew were shot at, and returned fire, after one soldier was lightly wounded.

During the confrontation, a Palestinian youth climbed atop an armored vehicle, and was shot by soldiers who suspected he may have been carrying explosives, the official said.

Since the fighting broke out, more than 1,960 people on the Palestinian side have been killed and 680 people on the Israeli side have been killed.