Sharon and Peres in public clash

Israeli officers examine a dead donkey who was used to pull a bomb-laden cart that exploded at Dahaniyeh village in Gaza

JERUSALEM (CNN) -- A clash between Israel's prime minister and foreign minister was overshadowing attempts on Monday to bolster a tentative U.S.-brokered cease-fire.

Ministers took sides after Ariel Sharon turned down a proposal by U.N. Secretary-General Kofi Annan for Foreign Minister Shimon Peres to meet Palestinian Authority President Yasser Arafat.

Sharon said the three-way meeting could only come after the violence had completely ended.

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The rejection -- which Palestinians criticized -- was the first public disagreement between the hawkish prime minister and the dovish Peres.

"I think the better way to fight terrorism is through diplomatic channels with the help of the military," Peres told Israel's Channel One television, though he refused to say whether he wanted to meet Arafat.

Sharon's backers in the cabinet criticized Peres, and a Peres ally responded that his Labor party might have to leave the government coalition. Peres said it was only natural he would disagree with right-winger Sharon at times.

The two met at length late on Sunday, the Associated Press reported.

Israel television said the two had agreed to put their differences aside for now, with Sharon giving Peres the right to set up meetings if the violence continues to diminish.

Palestinian and Israeli security chiefs were expected to meet on Monday to discuss the next phase of the cease-fire which was holding despite new incidents of violence.

The Palestine Red Crescent Society said an 11-year-old Palestinian child, Ali Abu Shaweesh, was killed on Sunday by a live bullet fired by the Israeli army in Khan Yunis in Gaza, near a Jewish settlement.

The Israeli army said the incident came after young Palestinian men had gathered in Gaza along the border fence that separates Khan Yunis from settlements in Gush Katif and thrown stones and Molotov cocktails.

In response, Israeli soldiers started shooting tear gas and, when that failed to disperse the crowd, fired at the legs of the participants and hit at least one Palestinian youngster, the army said.

In another incident, a 12-year-old Palestinian boy died at the weekend after Palestinian gunmen opened fire on Israeli soldiers. Palestinian sources said the boy may have been the victim of friendly fire, and the Israelis were not being blamed for that shooting.