The cabinet decided on Wednesday to give Egyptian mediation efforts a chance but at the same time instructed the army to prepare for a possible military operation in Gaza. In recent days government ministers have come out in support of a military operation raising doubts over to the successful outcome of Egypt's efforts to bring about a ceasefire.

While cabinet ministers mulled over what strategy to take, two mortar shells from Gaza hit the Nirlat factory in the western Negev Kibbutz Nir Oz, the exact same site of last week's deadly attack which claimed the life of Amnon Rosenberg.

Prime Ministrer Ehud Olmert's spokesman Mark Regev told reporters that while the government hopes to achieve a truce with Gaza the army will continue its preparations. Regev stressed that there was no talk of launching a large scale operation in Gaza, issuing a veiled hint that the army may suffice with conducting limited pinpoint incursions into the Strip against terrorist targets rather than launching a widespread operation that could lead to a large number of casualties on both sides.

Prior to Wednesday's meeting vice Premier Haim Ramon called on the government to immediately launch a military operation in Gaza, adding that it was time to take decisive action against the terror groups.

The meeting was preceded by a Tuesday discussion between Olmert, Foreign Minister Tzipi Livni, and Defense Minister Ehud Barak in which the various scenarios were reportedly discussed. IDF Chief of General Staff Lt.-Gen. Gabi Ashkenazi and Shin Bet (Israel Security Agency) chief Yuval Diskin also took part in that meeting, from which no details were provided. 06/11/08

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