U.S. praises Israel for restraint over Gaza

WASHINGTON (Reuters) - The United States voiced strong concern on Thursday over an upsurge of violence in Gaza but said Israel had the right to defend itself in the face of rocket attacks from the Palestinian group Hamas.

At a news conference with British Prime Minister Tony Blair, U.S. President George W. Bush said the two were worried about the violence and urged all sides to work together.

"We strongly urge the parties to work toward a two-state solution. Looking forward to continuing to work on this issue. I've instructed my secretary of state to be actively engaged," Bush said.

"We understand the fright that can come when you're worried about a rocket landing on top of your home," he added.

Israeli air strikes on Thursday destroyed a Hamas security headquarters and a car carrying one of the group's top commanders. Israel had threatened a "severe" response to cross-border rocket attacks that have persisted despite a troop and settler pullout from Gaza in 2005.

State Department spokesman Sean McCormack urged restraint on all sides but said Israel had the right to respond to rocket attacks from Hamas, which he blamed for the latest violence.

"Israel has the right to defend itself and it has exercised great restraint in the face of these rocket attacks," McCormack told reporters.

He said Secretary of State Condoleezza Rice spoke earlier to Palestinian President Mahmoud Abbas as well as Israeli Prime Minister Ehud Olmert about the latest violence.

The current round of fighting began last Friday between Islamist Hamas and Abbas's secular Fatah movement. More than 40 Palestinians have been killed in the most serious violence since the two groups formed a unity government in March.

"DEATH KNELL" FOR PEACE

Israel's ambassador to the United States, Sallai Meridor, told Reuters that 70 rockets had been launched into Israel in the past three days alone.

"It could be a death knell to any prospects for peace," Meridor said.

He said Israel's government had to protect itself and was trying to do this in a targeted way. "But the situation is so volatile that the situation could deteriorate," he said.

Rice has sought in recent months to revive stalled peace efforts between the Palestinians and the Israelis, visiting the region almost monthly to try and bring the two sides together.

McCormack said Rice remained "deeply engaged" in trying to push the process forward and planned to visit the region in the near future. He did not provide a date.

Rice had been expected to go to Israel and the Palestinian territories this week, coupled with her visit to Russia, but internecine Palestinian fighting and Olmert's political weakness resulted in the Middle East leg being scrapped.

"There is nothing more that we want than to have a chance for peace and this is what we are working on with Secretary Rice against many odds. But the situation on the ground makes things very difficult," Meridor said.

"At the end of the day we cannot force the Palestinians to make the choice for peace. They have to make it themselves," he added.

Meridor said a major goal should be to prevent the smuggling of weapons into Gaza and increased attempts to strengthen moderates like Abbas.

The United States has given its backing to Abbas and plans to spend $60 million to boost his presidential guard and for other security costs. Hamas sees this security funding as an aggressive bid by Washington to help crush the militant group. ((Editing by Eric Walsh, e-mail: sue.pleming@Reuters.com; tel: 202 898 8393)