Experts from the 15 Security Council nations were to meet later in the day to discuss the draft, but Bolton was not optimistic.

"I'm not sure there are amendments that we could propose that would make it into an acceptable resolution," he said.

Israel launched the offensive last week in response to the capture of an Israeli soldier, 19-year-old Cpl. Gilad Shalit.

The resolution calls on Israel to "scrupulously abide by its obligations and responsibilities under the Geneva Convention," and expresses its "grave concern about the dire humanitarian situation of the Palestinian people.

It demands that Israel "cease its aggression against the Palestinian civilian population" in Gaza, and also demands that Israel withdraw its forces immediately.

The document makes no mention of Palestinian rocket attacks on Israel, although it expresses appreciation for efforts to find a diplomatic solution and release all prisoners, including Shalit.

France's U.N. Ambassador Jean-Marc de La Sabliere said his nation would try to make the resolution more acceptable to the wider council.

"We think that this text needs to be balanced, it's not balanced enough and we will propose amendments," he said. "It requires, we think, a lot of work."

Israel, backed by the US and European countries, has accused the UN council of bias, because it did not also criticise violence perpetrated on the Palestinian side.

On Wednesday, Mr Dugard said Israel was violating the most fundamental norms of humanitarian and human rights law in its actions in Gaza.

Its military operation violated prohibitions on collective punishment, intimidation, while last week's arrest of officials from the governing Hamas movement appeared to constitute hostage-taking that was prohibited by the Geneva Conventions, Mr Dugard said.

"I am concerned with the law. And here it is clear that Israel is in violation of the most fundamental norms of humanitarian law and human rights law," he Mr Dugard said.

Council split

The resolution, which was brought by Islamic states, expressed "grave concern at the violations of the human rights of the Palestinian people caused by the Israeli occupation, including the current extensive Israeli military operations".

The Council urged "Israel, the occupying power, to immediately release the arrested Palestinian ministers... and all other arrested Palestinian civilians".

The text also called "for a negotiated solution to the current crisis".

European Union member states on the council, including Britain, France and Germany, voted against the resolution.

Finland, speaking on behalf of the EU, took the floor to say that the situation needed to be addressed in a "more balanced manner".

'Opportunity missed'

The resolution did urge "all concerned parties to respect the rules of international humanitarian law and to refrain from violence against civilians".

This text was added at the last moment in an unsuccessful bid to placate European concerns about what they saw as a one-sided resolution, correspondents said.

The resolution went on to call on both sides to "treat under all circumstances all detained combatants and civilians in accordance with the Geneva Conventions".

The United States, which is only an observer at the Council, called the resolution a wasted opportunity.

"A historic opportunity to address the human rights situation in a fair, equitable and balanced way has instead resulted in an unbalanced effort to single out and focus on Israel alone," US Ambassador to the UN in Geneva Warren Tichenor said.

Israel's ambassador, Itzhak Levenon said: "We find ourselves in an absurd situation in which the Human Right Council convened into urgent session ignores the rights of one side and holds a special meeting to defend the rights of the other side".

However, the Palestinian representative, Muhammad Abu Koash called it a "very mild and diluted resolution".

"While we gather here in this hall, Israeli tanks are moving and shelling Palestinians, the office of our parliament has been besieged by Israeli troops," he told the Council.

Brom and others say Israel's occasional willingness to make deals has encouraged the capture of soldiers and civilians. Though both Israel and the United States have made exceptions to their stated policies of not negotiating, Israel's cases have generated more notoriety because they involved releasing thousands of prisoners:

- In 2004, Prime Minister Ariel Sharon made a deal with the terrorist group Hezbollah to free 430 prisoners, including two Lebanese guerrilla leaders, in exchange for a kidnapped Israeli businessman and the bodies of three Israeli soldiers.

- In 1985, Israel released 1,150 prisoners in exchange for three Israeli soldiers captured in Lebanon in 1982. Some of the freed prisoners helped organize a Palestinian uprising in the late 1980s.

- In 1983, Israel freed 4,765 Palestinian prisoners to get back six soldiers held by Palestinians.

When Palestinians recently demanded the release of 1,000 prisoners in exchange for Israeli Cpl. Gilad Shalit, Prime Minister Ehud Olmert issued a blunt statement: "We will not conduct any negotiations on the release of prisoners."

"This is a very important moment in which we should be tough enough to make it very clear that Israel is not going to release anyone," says Maj. Gen. Yaacov Amidror, a former Israeli intelligence officer who is an analyst at the Jerusalem Center for Public Affairs. "Otherwise, you and I will not be in a position to walk free on the streets of Tel Aviv."

It may be that the particular circumstances surrounding the latest conflict in Gaza are encouraging a no-negotiation stance that has nothing to do with a policy shift.

Israel has cracked down on the Palestinian government since Hamas won control in parliamentary elections in January. The United States and Israel consider Hamas a terrorist organization, and Israel has arrested numerous Hamas politicians in the past week.

Even before Shalit was captured, Palestinian militants were firing rockets from Gaza deeper into Israel, generating growing anger in Israel. The latest Israeli incursion into Gaza is aimed at stopping the rockets in addition to freeing Shalit.

"There is a very strong feeling that the government response has to be tough because it's also connected with the Qassem rockets," says Shlomo Avineri, a political scientist at Hebrew University of Jerusalem and a former Foreign Ministry official.

It is unclear whether Olmert will continue to avoid negotiations - a stance that can be difficult in a democracy of 6.4 million people.

"When a military man is kidnapped, you feel a strong moral obligation to care for him," Brom says. "In a democratic state, public opinion is important. The families of captured people are aware of it."

On Thursday, Shalit's family for the first time called for a prisoner exchange. "You cannot solve the problem by military action only," Shalit's uncle Bezalem Raz said. "In the Middle East, everybody understands that to release Gilad, there will be a payment," Raz added, alluding to releasing Palestinians.

"People are divided between their hearts and their minds," says Amidror, the former intelligence officer. "In their minds, they understand it's a mistake to trade prisoners. In their heart, it's a Jewish heart full of mercy."

Respondents were questioned on Wednesday, the day before Israeli tanks and troops pushed into northern Gaza, taking over areas Israel abandoned last year after 38 years of occupation.

The offensive aims to bring home Corporal Gilad Shalit and halt militant rocket fire into the Jewish state from Gaza.

Israel has hinted it might assassinate Hamas leaders unless Shalit is freed. In a clear warning, an Israeli helicopter gunship wrecked the empty Gaza office of Prime Minister Ismail Haniyeh of Hamas a few hours before dawn on Sunday.

Hamas, which is sworn to destroy Israel, took over the Palestinian government in March after winning January elections. It is already reeling under a Western aid embargo imposed because it refuses to recognize the Jewish state and disarm.

The poll showed 47 percent of respondents were unhappy with the overall performance of Israeli Prime Minister Ehud Olmert, compared to 43 percent who gave a positive review. There were no comparisons from previous polls.

New Defense Minister Amir Peretz's approval rating was low, with only 28 percent of respondents saying he was doing a good job, while 64 percent said he was not.

Israel, meanwhile, signaled its intention to reduce the scope of its operation in one of the invaded towns. Lt. Col. Yaniv, a battalion commander, said he expected troops to wind up their mission in parts of Beit Lahiya within a day or two. Those areas include a neighborhood where Palestinian militants fired rockets into the southern Israeli city of Ashkelon earlier in the week, reaching significantly farther inside Israel than at any time before.

Amid the fighting, there was still no word on the fate of Cpl. Gilad Shalit, captured June 25 by Hamas-affiliated militants.

Israeli leaders have singled out Hamas as their chief enemy, and the Palestinian prime minister, a Hamas leader, accused Israel of trying to bring down his government.

Dozens of Palestinian casualties, including many wounded women and children, crowded the emergency rooms and corridors of Gaza hospitals, already suffering from shortages of medical supplies because of a closure Israel clamped on the territory after the soldier's capture.

After touring Gaza's main hospital Thursday evening, Palestinian Prime Minister Ismail Haniyeh of Hamas called for international intervention to stop the Israeli offensive, which he called a "crime against humanity."

Haniyeh called the Israeli push "a desperate effort to undermine the Palestinian government under the pretext of a search for the missing soldier."

His Hamas movement, with a history of violence against Israel, was voted into power in a January parliamentary election.

Interior Minister Said Siyyam of Hamas issued the Palestinian government's first call to arms since Israeli ground forces invaded Gaza, appealing on Thursday to all security forces to fulfill their "religious and moral duty to stand up to this aggression and cowardly Zionist invasion." The security forces are dominated by officers loyal to the rival Fatah Party, and there was no immediate response to his appeal.

Israel insisted it was not planning to reoccupy Gaza, but military commanders said they had orders to win the soldier's release and prevent militants from firing rockets, even if that meant repeated short-term incursions.

Palestinians fired 12 rockets at Israel in the 24 hours that led up to Friday's early morning airstrikes. Six landed in Israeli territory, the military said, and one caused damage in the town of Sderot, just outside Gaza. No one was hurt.

In response, Israel on Thursday sent troops and tanks into two densely populated northern Gaza towns where militants often fire rockets, Beit Lahiya and Beit Hanoun.

Dozens of Palestinian casualties, most of them militants but including many wounded women and children, crowded the emergency rooms and corridors of Gaza hospitals, already suffering from shortages of medical supplies because Israel closed the territory after the soldier's capture.

After touring Gaza's main hospital Thursday evening, Palestinian Prime Minister Ismail Haniyeh of Hamas called for international intervention to stop the Israeli offensive, which he called a "crime against humanity."

Haniyeh called the Israeli assault "a desperate effort to undermine the Palestinian government under the pretext of a search for the missing soldier." His Hamas movement, with a history of violence against Israel, was voted into power in a January parliamentary election.

Throughout the day, Israeli aircraft targeted Palestinian militants with missile strikes, while Israeli tanks took up positions among tightly packed Palestinian homes. Apache helicopters hovered overhead, firing flares and machine guns to support ground forces engaged in fierce skirmishes with masked Palestinian gunmen.

Militants, many wearing black masks, sneaked down narrow alleys to approach the Israeli forces and open fire with AK-47s and rocket-propelled grenades.

Lt. Col. Yaniv, a battalion commander, said resistance was stiff. "The Palestinians have been firing rocket-propelled grenades, automatic weapons and setting off explosive devices," said Yaniv, who gave only his first name under military regulations.

It was not clear how many civilians were killed, but Hamas said seven of its militants died in the clashes.

During lulls in the fighting, some Palestinian women and young children fled their homes to evacuate the area on foot.

Ali Ajrami, a tailor living in a farm house in Beit Lahiya, was trapped with his nine children in one room after Israeli tanks parked behind his house and special forces took positions on the rooftops of neighboring buildings.

Gunfire could be heard nearby.

"We are trapped. I don't know what to do," he said. Ajrami said he had stocked up food and diesel fuel before the offensive, but was struggling to keep his children indoors.

An Israeli soldier died in one of the skirmishes - the first Israeli casualty. Israel Radio and Army Radio said the army was checking the possibility that he was killed by errant Israeli gunfire. The army spokesman's office said he was killed by a Palestinian gunman.