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Israel has rejected international calls for a 48-hour truce in the Gaza Strip to allow in humanitarian aid, says a government spokesman.
Mark Regev said that Israel was not looking for a "band aid", or something that would expire a month from now. But he said dialogue would continue.
The truce is among issues being discussed by the Israeli cabinet.
Israel has launched air strikes on Gaza for a fifth day, and more Palestinian rockets landed in southern Israel.
A foreign ministry spokesman earlier said a unilateral 48-hour halt was "unrealistic", as long as Hamas continued to fire at Israel.
A Hamas spokesman quoted by AFP news agency criticised the current international truce proposals "put the executioner and victim on equal footing."
Fawzi Barhum said international and Arab efforts had to focus on "ending this aggression".
A European Union statement had called for an "unconditional" halt to Hamas rocket attacks.
The Arab League is also meeting in Cairo to discuss the crisis.
Palestinian officials say about 374 Palestinians have died in Israeli air strikes since Saturday; four Israelis have been killed by rockets fired from Gaza, which is under Hamas control.
Hospitals depleted
The 48-hour ceasefire plan to allow aid into Gaza, proposed by French Foreign Minister Bernard Kouchner, was raised - and rejected - during an Israeli leadership meeting late on Tuesday.
The ceasefire request is being discussed at a cabinet meeting, along with the possibility of widening and deepening this campaign, says the BBC's Mike Sergeant in Jerusalem.
Mark Regev, a spokesman for Prime Minister Ehud Olmert, said that dialogue with the international community would continue.
On Wednesday, Israeli missiles pounded tunnels along Gaza's Egyptian frontier, as well as an office of former Prime Minister Ismail Haniyeh and other buildings linked to his Hamas movement.
Rockets landed in and around the southern Israeli town of Beersheba, about 40 km (24 miles) from Gaza on Wednesday and Tuesday.
Although no serious casualties were reported, this is the deepest that Palestinian rockets have penetrated inside Israel - something that will only increase Israeli public support for continued military action, observers say.
A police spokesman said 860,000 Israelis were now in range of Palestinian rockets.
The UN says at least 62 Palestinian civilians have died since Saturday.
Red Cross spokesman in Gaza Iyad Nasr said Gaza badly needed more supplies bringing in.
"In particular the hospitals have been depleted and stretched to the maximum because of the closure imposed," he told the BBC.
A spokesman for the UN Relief and Works Agency - the largest aid agency operating in Gaza - says it will resume food distribution on Thursday after a two-week suspension because of a shortage of supplies.
Eighty-four UNRWA trucks carrying mostly food and some medicine are due to go into Gaza on Wednesday.
Closed military zone
The US - Israel's strongest ally - has called for a long-term solution beyond any immediate ceasefire. But the White House reiterated the onus was on Hamas to act first to end the violence.
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