KHAN YUNIS, GAZA STRIP, DEC. 29 -- Israeli soldiers fatally shot at least four Arabs and wounded at least 125 in clashes today in the Gaza Strip ahead of an important Palestinian anniversary, Israel radio and Palestinians said.

The radio said the clashes began after soldiers shot dead two masked Palestinians who ignored an order to halt in the strip's southern district of Rafah.

The radio said two more Palestinians were killed in mass demonstrations after the shootings. Palestinians said tens of thousands of protesters had taken to the streets.

At least 100 people were wounded in clashes in Rafah and 25 were wounded in the town of Khan Yunis, the radio said.

Palestinians said the Khan Yunis clashes began when soldiers chased masked activists putting up decorations and graffiti marking the 26th anniversary of the founding of the Palestine Liberation Organization's mainstream Fatah movement on Jan. 1.

{The military also said a Palestinian woman from Rafah was brought dead to a hospital in nearby Khan Yunis, the Associated Press reported. The military said the cause of her death was unclear but the army included her in the toll of Palestinians injured or killed by army gunfire.}

Security forces have killed at least 750 Palestinians since the uprising against Israeli rule erupted in December 1987. Palestinians have killed 295 Arabs, most as suspected informers, and 59 Jewish Israelis have died.

Israel had reinforced troops in the territories to prevent celebrations on the anniversary of Fatah, which was founded in 1965 by Yasser Arafat, but Palestinian sources said paramilitary marches were taking place in the territories.

{In other violence, Israeli gunners shelled Shiite Moslem villages in Lebanon's Syrian-policed Bekaa Valley, killing eight civilians the Associated Press quoted Lebanese police as reporting.

{Israeli military officials confirmed the raid and said it came after several Katyusha rockets were fired from the area around the villages into northern Israel.