HIGHLIGHTS: Hamas Threatens to Kill 100 Israelis for Every One of Its Leaders Slain||The Dead Body of an Israeli Man Found Near Tulkarm||Israel to Implement New Policy to Deter Resistance Bombers||Israel's So-Called Security Cabinet Mulls Expulsion of a Relative of a Palestinian Bomber|| STORY: A new upsurge of killing threatened Israel and the Palestinian territories after two Jerusalem bombings in as many days, with Israel mulling new tactics and the Palestinian Resistance Hamas group threatening to kill 100 Israelis for every one of its leaders slain.

As the region lurched deeper into bloodshed Thursday, the body of an Israeli man who had been shot in the head was found near the West Bank town of Tulkarem, on the boundary with Israel.

Israel implemented a new policy of trying to deter Resistance bombers by destroying the house of a teenage kamikaze who injured seven Israelis when he blew himself up in a downtown Jerusalem snackbar.

Israeli officials said after a so-called security cabinet meeting Wednesday they were formulating new ways of combatting the bombers after the attack, the first in the disputed city since June 19, when Israeli forces reoccupied the West Bank to stamp out Resistance activists.

They examined house demolitions and the banishment of relatives of bombers from the West Bank to the Gaza Strip, although legal advisors said the measures must remain strictly within the limits of international law.

Resistance groups such as Hamas, which killed seven people -- including four Americans and a man with dual US-French citizenship -- in a bomb attack at Jeursalem's Hebrew University Wednesday -- have threatened to kill Israeli leaders' families if the expulsions go ahead.

Hamas stepped up its tough speeches after a July 22 air strike on Gaza that killed the head of its armed wing, the Ezzedine al-Qassam Brigades.

Ezzedine al-Qassam, whose military chief Salah Shehade died along with 14 others, nine of them children, said: "In response to the Israeli assassination of any leader from our movement ... we will kill 100 Zionists at least."

The group said the university blast, which unusually was caused by a planted bomb and not a bomber attack, was "one of a series" of reprisals for the raid that killed Shehade.

"We ask our military groups to continue military operations and martyr operations," it said, in a reference to Hamas' attacks on Israeli targets and Palestinian bombings.

It blamed Wednesday's blast on the Israeli occupation of east Jerusalem and vowed to "teach (Israeli Prime Minister Ariel) Sharon and (Defense Minister Binyamin) Ben Eliezer a lesson after they came to assassinate our leader."

The group also criticized US President George W. Bush, whom they called the "head criminal," for his support of Israel and said Hamas would pursue its resistance.

"We say to America, we are not afraid."

Around 5,000 Hamas supporters rallied Wednesday night in Gaza City, calling for more attacks and warning Israelis not to leave their homes.

Israeli intelligence reports this week warned of around 60 bombings in the works, putting the country on full alert for a new round of killing.

Tensions skyrocketed after the internationally-condemned Israeli air raid on Gaza City, which ended a period of relative calm and, according to Palestinians, smashed a tentative ceasefire proposal being worked out between the Resistance factions.

ISRAELI CABINET MULLS THE EXTRADITION OF A RELATIVE OF A PALESTINIAN BOMBER

Israeli media has meanwhile reported that the government intends to launch expulsion proceedings against a relative of a terrorist who was involved in the Emmanuel bus ambush attack last month.

If the move is approved by justice authorities, the relative would be expelled to the Gaza Strip, in line with the opinion of Attorney-General Elyakim Rubinstein that relatives may not be sent abroad and must have been accomplices to the so-called terrorist.

The expulsion would be the first case of a relative to be expelled from the West Bank following a government decision to implement the policy.

The person in question was arrested following the July 16 attack.

The decision to go ahead with the policy was made Wednesday in a meeting of the so-called security cabinet, which was presented with a package of measures from the defense establishment on deterring so-called terrorists, specifically Palestinian bombers.

Prime Minister Ariel Sharon has decided to adopt the plan, according to the Prime Minister's Office.

The package includes measures such as demolishing the homes of bombers and using lethal means to break up demonstrations in support of Resistane bombers. The cabinet also decided to examine the possibility of expropriating property of Israeli Arabs who aid so-called terrorists.

The defense officials also recommended withholding state child support payments from the families of the aforesaid.

PHOTO CAPTION

Relatives of a Palestinian bomber, who blew himself up two days ago in Jerusalem, sit amid the ruins of their home in Beit Jala near Bethlehem, after the Israeli occupation army blew it up in retaliation, on August 1, 2002. REUTERS/Magnus Johanss