GAZA: Israeli troops and Hamas gunmen clashed inside southern Gaza on Saturday in one of the worst exchanges of fire since Israeli forces launched an assault to free a soldier abducted by Palestinian militants.

Gunmen from the armed wing of the ruling Hamas movement said they hit an Israeli tank with two rocket-propelled grenades near the town of Khan Younis.

An Israeli military source said one RPG was fired at an army bulldozer, adding the clash was still taking place and that there were no immediate reports of casualties.

Soldiers backed by tanks had earlier skirmished with gunmen in the area, wounding one Palestinian, witnesses had said. An Israeli military source had said the soldiers were looking for mines and other explosives.

Israeli forces entered the southern Gaza Strip this week as part of efforts to free Corporal Gilad Shalit, who was seized in a cross-border raid last Sunday.

Indecision, says Abbas

Palestinian President Mahmoud Abbas said Egyptian efforts to diplomatically resolve a crisis with Israel over an abducted soldier were being set back by confusion about who has the decision-making power on the Palestinian side: the Hamas government or the militants holding the captive.

``The efforts by the Egyptians are facing difficulties due to the absence of an address on the Hamas side capable of taking decisions,'' said Mr. Abbas, moderate leader of the mainstream Fatah movement.

``Hamas political leadership outside are saying the decision is in the hands of its military wing inside Gaza, while the military wing is saying the decision is in the hands of the political leadership outside. Ismael Haniyeh, the current Prime Minister of Hamas government, appears not to have any say in what is going on in this regard,'' Mr. Abbas said in a statement issued by his office. - Agencies.

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