DATE=03/28/02

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL / PALESTINIANS (S)

NUMBER=2-288087

BYLINE=MEREDITH BUEL

DATELINE=JERUSALEM

CONTENT=

VOICE AT:

INTRO: Top Israeli officials are considering how to respond to a devastating Palestinian suicide bombing that left at least 21 people dead and injured more than 100. V-O-A Correspondent Meredith Buel reports from Jerusalem.

TEXT: Israeli Prime Minister Ariel Sharon is consulting with Defense Minister Binyamin Ben-Eliezer and top military officials as the Jewish state decides on its response to one of the deadliest Palestinian attacks during 18-months of conflict.

Several Israeli cabinet ministers are calling for massive retaliation, including ousting Palestinian leader Yasser Arafat, toppling his government, and re-conquering large parts of the West Bank and Gaza Strip.

Such a large-scale military operation could completely derail current efforts by U-S Middle East envoy Anthony Zinni to broker a cease-fire.

The Palestinian Authority, which condemned the bombing, ordered employees to evacuate their offices in the West Bank city of Ramallah in anticipation of possible Israeli military retaliation.

Israeli officials are calling the suicide attack at a seaside hotel in the coastal city of Netanya a "Passover massacre."

About 250 people were sitting down for a ritual meal ushering in the Passover holiday when the bomber entered the hotel's dining room and exploded his charges. (Signed)

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