Israel to pull troops out of Gaza

Israel says it will pull its forces out of a strip of Palestinian territory in Gaza seized on Monday.

Israel says it will pull its forces out of a strip of Palestinian territory in Gaza seized on Monday.

An official said Israeli forces would move out of the pocket overnight.

Israeli tanks seized the north-east corner of the Gaza Strip after Palestinians fired mortar shells at the Israeli town of Sderot.

The Israelis had said the would hold the territory until the danger passed.

An Israeli military commander had said his forces might remain there for months.

US Secretary of State Colin Powell called the unprecedented Israeli move into Palestinian-controlled territory overreaction and exaggeration.

Palestinians said it was a violation of signed agreements. The Palestinian Authority called Israel's intention to stay in its new position "aggression against the Palestinian people".

After the mortar shells were fired at Sderot, a desert town about two miles from the Gaza border fence, Israel unleashed a retaliatory strike, hitting Palestinian police posts and headquarters buildings with tank and rocket fire.

In the early hours, an Israeli army bulldozer, guarded by tanks, moved towards the Gaza town of Beit Hanoun, clearing farmland. The Israelis said their intention was to move Sderot out of mortar range.

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