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A Palestinian rocket hit a house and power lines in Sderot Wednesday, plunging several neighborhoods into darkness but causing no casualties, Israeli media reported.
Meanwhile, Israel resolved to keep striking Gaza Strip rocket squads firing on Israeli border towns, and insisted it would not negotiating a truce with radical groups.
Prime Minister Ehud Olmert signalled for the first time that Israel's willingness to talk seriously about the Arab peace initiative depended on a cessation of Kassam rocket fire on Israel.
Olmert praised the peace plan in a meeting with a delegation of four US congressmen from the House of Representatives Democracy Assistance Commission.
"We see a tangible change in the Arab position by virtue of the fact that 22 Arab countries are looking for a way to make peace with Israel, not war," he said.
However, Olmert also emphasized that it was impossible to hold serious negotiations on the initiative as long as rockets were falling on Israeli citizens on a daily basis.
The supreme leader of Hamas, Khaled Mashaal, which has been behind the latest surge in rocket attacks, vowed that attacks on Israel would continue, too.
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