HIGHLIGHTS: Occupation Army Arrests 14 Palestinians||Clashes Between Occupation Troops & Resistance Men Continue in Kalkiya & Jenin||Israeli Government Issues Statement on Policy Change in Response to Resistance Bombings|| STORY: Two Israeli occupation soldiers were wounded Tuesday in a firefight with Palestinian Resistance men near Kalkilya in the northern West Bank.

One occupation soldier sustained serious wounds, with the second lightly-to-moderately wounded, according to occupation army sources.

Ongoing exchanges of gunfire are reported to have continued for sometime. No further details were immediately available.

OCUPATION TROOPS TAKE UP POSITIONS IN PALESTINIAN CITIES

Meanwhile, large numbers of occupation army tanks and troops entered the cities of Jenin, Kalkilya and Nablus before daybreak Wednesday, and arrested more than a dozen Resistance-activist suspects in raids throughout the West Bank.

Helicopters flew overhead as occupation soldiers entered Nablus, coming in many directions, witnesses said. Occupation army sources said three suspects were arrested in the city and that then the occupation troops withdrew.

However, soldiers took up positions in Jenin and Kalkilya, two other cities from where Resistance attacks are frequently launched.

In Jenin the occupation troops came under gunfire, and at least one explosive was detonated, but there were no reported casualties.

Tanks moved into the Jenin refugee camp as attack helicopters fired from above, witnesses said.

Both Jenin and Kalkilya were placed under curfew.

In all the occupation army arrested eight so-called suspects in the sweeps in these three cities.

Six Resistance-activist suspects were held in the Hebron area, including one from Hamas, the Islamic group that claimed responsibility for Tuesday's deadly bus bombing in Jerusalem in which 19 Israelis died.

ISRAELI GOVERNMENT STATEMENT

Wednesday's military action came as the government issued a statement after a late night security cabinet meeting. It said there would be a change in the way Israel responds to what the statement calls, "murderous acts of terror."

The statement said Israel would respond by capturing Palestinian Authority territory. These areas, the statement went on to say, would be held by Israel as long as "terror continues."

Unlike earlier statements, the Israeli government did not characterize its planned incursions as short-term. Even a six-week invasion in late March, Operation Defensive Shield, was described as limited to destruction of terror capabilities, not holding on to territories.

PHOTO CAPTION

An Israeli tank moves in the street as Israeli troops leave the West Bank city of Nablus June 19,2002. Israel said it would reoccupy Palestinian-ruled areas in the West Bank in response to any new Palestinian attacks, signaling a major policy change after a suicide bombing killed 19 people. Palestinian officials said the Israeli decision was an open invitation to more violence. (Abed Omar Qusini/Reuters)