It was incorrectly reported yesterday that Israeli Maj. Gen. Avram Mitzna had resigned a key tank command in 1982 rather than serve in the invasion of Lebanon. Mitzna had asked to be relieved of his duties as head of the Israeli Defense Forces staff college in 1982 as a result of the massacre of Palestinians in refugee camps in Beirut. Col. Eli Geva was the officer who was relieved of command becuase of opposition to the invasion of West Beirult. (Published 1/13/88)

JERUSALEM, JAN. 11 -- A Jewish settler shot to death an Arab teen-ager today in the first fatality involving Israeli civilians since Palestinian demonstrations against Israeli occupation began Dec. 9.

Two other Palestinians died today as a result of clashes between the Israeli Army and rock-throwing demonstrators, bringing the death toll to date to at least 32.

But the fatal shooting of Rabah Hussein Ghanam, 16, in the village of Beitin, 10 miles north of here, added a dangerous ingredient to the current wave of violence.

The incident -- on which Israeli and Palestinian versions differ -- underlined the strain that has long resulted from the settlers' insistence that Jews have the right to live anywhere in the territories Israel captured in the 1967 war and the Arabs' resentment at the loss of what they consider their traditional lands.

About 62,000 Jews live among 1.4 million Palestinians in the occupied territories, perhaps a third of them in attractively priced suburban housing clusters around Jerusalem.

Many others, like the two men involved in the Beitin incident today, belong to the strongly nationalist Gush Emunim movement, which often has established settlements on previously communally held land near Palestinian villages, provoking anger among Arabs there.

After the incident, Gush Emunim asked for a meeting with Prime Minister Yitzhak Shamir to press for the release of the men involved at Beitin as well as of Jews convicted of terrorism against Arabs. It urged a "massive Jewish settlement" drive to "prove to the whole world" that Jews "would not be broken" in their drive to establish more settlements in the occupied territories.

In the Beitin shooting, Pincas Wallerstein, a prominent leader of a controversial West Bank settlement at nearby Ofra, told police and Army investigators that he opened fire this morning when the car in which he was driving with bodyguard Shay Ben Yosef was mobbed and stoned by more than a dozen Palestinian youths at a roadblock of burning tires.

He was quoted as saying that he first had fired into the air to disperse the stone throwers, but that they had resumed attacking him when he and his companion sought to drive off. It was then, he said, that he chased them toward the village and opened fire to make good the escape.

Maj. Gen. Avram Mitzna, commander of Israel's Central Command, which covers the West Bank, said initial investigation showed that the two settlers had acted in self-defense.

"Their car was blocked by burning tires and a group of rioters began attacking them with rocks at close range," he said. "They were definitely acting in self-defense."

The general's remarks carried considerable weight since Mitzna is seen as a liberal who, in the past, has accused settlers of being trigger happy. In 1982 he shocked Israelis when he resigned a key tank command rather than serve in the invasion of Lebanon.

But talking to reporters later, Beitin villagers denied that the youths had pounced on the two settlers. They said the Israeli indiscriminately had fired dozens of rounds at the retreating youths and noted that more than 50 yards separated the roadblock where the car was stopped and the bloodstains marking where Ghanam fell and another youth was wounded.

In the day's other fatalities, a Palestinian died in a Tel Aviv hospital of wounds received Saturday in the Gaza Strip and a demonstrator who tried to grab a soldier's rifle was shot dead in Khan Yunis, according to the Army.

{In the Gaza Strip, Arab protesters threw rocks at cars, including that of Associated Press reporter Karin Laub, the AP reported. The rocks injured a passenger, Mark Lavie, a journalist for the Canadian Broadcasting Corp.}

In much of the West Bank, stores, banks and other commercial activities closed for the second successive day as a mark of respect for the victims of last month's violence. The strike, backed by tracts from rival Palestinian groups, was scheduled to continue Tuesday.

Israeli occupation authorities placed Balata refugee camp and Beit Hilma village near Nablus under curfew after incidents between troops and demonstrators. At the Kalandia refugee camp near the Jerusalem airport, troops used tear gas to disperse demonstrators waving the flag of the banned Palestine Liberation Organization.

Israeli television tonight said that, in an effort to quell the unrest in the Gaza Strip, the Army henceforth would clamp an open-ended curfew on any refugee camp or community there attacking troops or demonstrating.

Meanwhile, Foreign Minister Shimon Peres met with Marrack Goulding, the U.N. undersecretary general who arrived here Friday on a fact-finding mission following the Security Council resolution condemning Israel's handling of the violence and its decision to deport nine alleged ringleaders.

Shamir has refused to see the U.N. envoy, but Defense Minister Yitzhak Rabin, the Labor official whose tough tactics have failed to end the violence, is to receive him Tuesday.