* Israel says rockets fired from Gaza Strip; retaliates
* Gazan child, woman die in explosion
* Netanyahu recalls Israeli negotiators from Cairo talks
* Ceasefire had been due to expire at 2100 GMT
(Adds Gaza deaths, updates on rockets, air strikes)
By Nidal al-Mughrabi and Jeffrey Heller
GAZA/JERUSALEM, Aug 19 (Reuters) - A ceasefire in the Gaza
Strip collapsed on Tuesday, with Palestinian militants firing
rockets into Israel, prompting Israeli air strikes that health
officials said killed a woman and a young girl.
Accusing Gaza Islamists of breaking the truce, Israel
promptly recalled its negotiators from talks in Cairo, leaving
the fate of Egyptian-brokered efforts to secure a lasting peace
hanging in the balance.
Israel said three rockets were fired out of Gaza nearly
eight hours before a ceasefire - extended by a day on Monday -
was due to expire. Later barrages took aim at a number of cities
and one missile hit open land in the greater Tel Aviv area,
without causing damage or casualties.
Gaza witnesses said Israeli aircraft launched 35 attacks,
including one on a house in Gaza City, where hospital officials
said a woman and a two-year-old girl were killed. A third
unidentified person also died in the strike, officials said.
Although it claimed responsibilty for later strikes, Gaza's
dominant Islamist group Hamas said it had no knowledge of any
rockets being fired earlier in the day, while the Cairo talks
were still underway.
Mark Regev, a spokesman for Prime Minister Benjamin
Netanyahu, called the initial attack on the southern city of
Beersheba "a grave and direct violation of the ceasefire".
A military spokesman said that in response to the salvoes,
"terror targets across the Gaza Strip" were attacked.
On Netanyahu's order, Israeli delegates to the indirect
talks in Cairo on ending the Gaza war and charting the
territory's future, immediately flew home.
Israel has said repeatedly that it would not negotiate under
fire, and Egyptian mediators have been struggling to end the
five-week-old Gaza conflict and seal a deal that would open the
way for reconstruction aid to flow into the territory of 1.8
million, where thousands of homes have been destroyed.
The Palestinian Health Ministry says some 2,019 people,
mostly civilians, have been killed in the small, densely
populated coastal territory since fighting started on July 8.
Sixty-four Israeli soldiers and three civilians in Israel
have also been killed during the offensive, which the Jewish
state launched with the stated aim of halting militant fire.
EXODUS
Suggesting that Israel expected more violence, the military
instructed Israeli civilians to keep bomb shelters open to a
distance of 40 kilometres (25 miles) from Gaza, and Israeli
media said municipalities in the Tel Aviv area were reopening
shelters they had shut when fighting subsided two weeks ago.
The rocket attacks spurred a new exodus of dozens of
Palestinian families who had fled previous fighting and had
returned home only days ago.
A Palestinian delegate in Cairo said negotiations for a
durable ceasefire were near collapse. "The talks have been
suspended unofficially," said Qais Abdel Karim of the Popular
Front for the Liberation of Palestine.
The Palestinians want Egypt and Israel to lift their
blockades of the economically-crippled Gaza Strip that predated
the Israeli offensive.
Hamas leader Izzat al-Risheq told reporters at a Cairo hotel
he saw chances of reaching another truce as "very weak". Risheq
posted on Twitter that Egypt was awaiting an Israeli response
before a truce officially expired at midnight (2100 GMT).
Israel, like Egypt, views Hamas as a security threat and
wants guarantees that any removal of border restrictions will
not result in militant groups obtaining weapons.
A senior Palestinian official in Gaza said sticking points
to an agreement in the Cairo talks have been Hamas's demands to
build a seaport and an airport, which Israel wants to discuss
only at a later stage.
Israel has called for the disarming of militant groups in
the enclave. Hamas has said that laying down its weapons is not
an option and has blamed Israel for the fact the talks faltered.
Punctuated by several temporary ceasefires, the scale of
fighting had diminished greatly since Israel pulled its ground
troops out of Gaza two weeks ago and it had seemed there was
little appetite on either side for the war to drag on.
However, Netanyahu said on Monday the Israeli military was
prepared to take "very aggressive action" if shooting against
Israel resumed.
Israel and Hamas have not met face-to-face in Cairo, where
the talks are being held in a branch of the intelligence agency,
with Egyptian mediators shuttling between the parties in
separate rooms. Israel regards Hamas, which advocates its
destruction, as a terrorist group.
(Additional reporting by Allyn Fisher-Ilan and Maayan Lubell in
Jerusalem and Stephen Kalin in Cairo; Writing by Jeffrey Heller,
Editing by Ralph Boulton and Crispian Balmer)
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