Israeli Defence Minister Shaul Mofaz has ordered a "security zone" to extend 150 metres into Palestinian land, following four days of what he called "chaos" on Gaza's border with Egypt, exacerbating Israeli fears about militant infiltrations.

Thousands of people have crossed the Rafah border, with Egyptian and Palestinian security unable or unwilling to stem the tide, helped by militants who have blown holes through the frontier walls.

"Defence Minister Shaul Mofaz ordered a security zone to be laid down on the Palestinian side of the northern Gaza Strip in order to minimise the danger to Israeli communities by the chaos reigning in Gaza," a spokeswoman said.

"What is vital is to create a no-man's land to which access is forbidden for Palestinians," she added.

Palestinian planning minister Ghassan Khatib said the unilateral decision was proof that Israel remained an occupation force regardless of its withdrawal of all troops from Gaza following 38 years of military rule.

"Security zones should be partly in one state and partly in another and it should be by agreement, but Israel is working on a unilateral basis. They didn't ask us to do this," Khatib told AFP.

"Despite its withdrawal Israel is still an occupying force and is acting on this basis," he charged.

The Palestinians insist that until Israel rescinds control of Gaza's land borders, air space and territorial waters, there can be no end of occupation.

In the four days since Israeli troops rolled out of Gaza on Monday, the flow of people in and out of Egypt has exacerbated Israeli fears that the porous border will become easy prey for militants wanting to smuggle weapons.

By Friday morning, at least 10 gaping holes had been gouged out of the concrete blast walls set up along the Rafah border, an AFP correspondent said, underlining the ease with which armed groups often operate above the law.

"In order to deal with this situation, Mr Mofaz has also ordered tougher security controls at Erez and Karni," the defence ministry's spokeswoman said, referring to the two main crossing points between Gaza and Israel.

"That may cause difficulties for the Palestinians, but the priority is to ensure Israeli security," said senior defence ministry official Amos Gilad.

Troops have also been ordered to step up surveillance along Israel's own border with Egypt, as soldiers were hunting for two Palestinians who crept into Israel from northern Gaza, although it was unclear whether they were armed.

The defence minister told Egypt and the Palestinians to restore order and that "the current situation cannot go on a day longer," a spokeswoman said.

Gilad accused the Egyptians of long neglecting the Sinai peninsula where "there have been very serious attacks from terrorists operating under their noses in the region," he said.

? AFP