Israel admits killing civilians was a 'mistake'

Israel admits bombing a Gaza building and killing 14 bystanders was a "mistake."

It has also agreed to ease restrictions on Palestinians and has employed a top diplomat in a damage-control effort.

Meawhile, the UN Security Council has met to consider condemning Israel for the bombing, to make it the latest in a string of denunciations.

World critics have rejected Israel's explanation that it was aiming only for Hamas commander Salah Shehadeh - who was also killed in the attack. They also claim Israel's policy of killing terror suspects is a violation of international law.

The Israeli military is investigating what went wrong. Military commanders insist they did not know civilians would be hurt.

Meanwhile, Palestinians have pulled the bodies of three of the dead children out of the rubble. More than 100 people were injured in the bombing, most of them in adjoining structures damaged by the bomb.

Countering the wave of international criticism, Israel sent peace advocate Nobel laureate Shimon Peres to see foreign reporters in Jerusalem. He repeatedly told them the bombing was a mistake, adding: "and I cannot explain mistakes."

Mr Peres, who is the foreign minister, said that as goodwill gestures, Israel would release some of the funds it has been keeping from the Palestinian Authority, and allow 4,000 Palestinian workers to enter Israel. He also promised curfews in West Bank cities and towns would be lifted for longer periods.

However Palestinians have called the Tuesday bombing a massacre, and have been demanding much wider Israeli measures to ease restrictions in the West Bank.