Jerusalem ? Israeli helicopters fired missiles Thursday at wanted men holed up in a fortress-like Palestinian Authority compound in the West Bank city of Hebron, as Palestinian officials fumed at a string of threats and condemnations from President Bush.

Palestinians called Bush’s threat to deny future aid and his unwillingness to rule out military action against Yasser Arafat rash and dangerous. Holding up funds will jeopardize the reforms Bush demands, they said.

“Delaying aid from the international community would also delay the reforms that we already have started within most of our organizations and sectors, in particular in education and the health system,” West Bank security chief Jibril Rajoub said.

In addition, lumping Arafat with the likes of the Afghan leadership that protected terror mastermind Osama bin Laden is “dangerous,” Rajoub said. “The Palestinian Authority is not the Taliban movement.”

Smoke rose Thursday from the back of the Palestinian Authority complex in Hebron after the missile strike. Israeli forces had been targeting the building with machine-gun fire for three days and warned they would overrun it if those inside refused to come out.

Israel also admitted for the second time in a week its forces “acted improperly” in firing on Palestinians violating a curfew. Three children in the West Bank town of Qalqiliya were wounded, including a 9-year-old in critical condition with brain damage.

Palestinian witnesses and security officials said tanks fired after a curfew break arranged with Israeli authorities to allow high school students to take final exams. Apparently after seeing the students on the streets, others headed out to the market, Palestinians said.

Soldiers opened fire on the children, the military said. Civil administration spokesman Maj. Peter Lerner confirmed the intention was to lift the curfew for students.

On June 21, the army said its forces erred in killing four Palestinians, including three children, after a rumor spread the curfew had been briefly lifted.