Israeli tanks and bulldozers rolled into a Gaza refugee camp Thursday and began demolishing houses hours after a car bombing killed two Palestinians.

A military source said troops had entered the Rafah camp to conduct a "centered operation against terror infrastructures in the area."

The latest raid followed a Palestinian car bombing on Wednesday at an Israeli checkpoint between Jerusalem and Ramallah. The blast killed two Palestinians and injured 7 border patrol policemen and 6 Palestinians.

Kieran Prendergast, the UN under secretary-general for political affairs said both sides should take actions to protect innocent lives.

Meanwhile, the European Union will offer 1.3 million euros in aid to homeless Palestinians in the Gaza Strip.

(CRI August 12, 2004)