JERUSALEM (AP)—Israeli troops shot and killed three Palestinians on Sunday and hospital officials said at least 25 others were wounded. Jerusalem Mayor Teddy Kollek declared that "co-existence between Jews and Arabs has collapsed."

Widespread demonstrations rocked the occupied territories of the West Bank and the Gaza Strip in one of the worst days of bloodshed since the protests began Dec. 8. Jerusalem also suffered as Arab activists cut a water main, leaving several neighborhoods dry.

Two other Arabs—a 15-year-old boy hit in the head by a soldier Saturday and a 10-year-old boy struck by a bullet last week—died of injuries suffered earlier and dozens more were hospitalized after they were beaten and tear-gassed by Israeli troops.

The disturbances began after Jewish settlers launched an overnight attack on Arab-owned cars in Hebron. Other attacks by Jewish vigilante groups were rumored to have occurred around the West Bank.

The United Nations said the fatalities brought to 48 the number of Palestinians killed in more than two months of demonstrations against the Israeli occupation, which began in 1967. A woman killed Saturday in the West Bank was not included after the United Nations said it could not confirm that she was killed by Israeli soldiers.

"This is the worst day I have ever seen," said Dr. Hani Abdeen, an internist at Mukassad Hospital in Jerusalem, where 31 Palestinians were treated Sunday for gunshot wounds, beating injuries and tear gas poisoning.

In addition, 32 Palestinians were hospitalized in Gaza City with beating injuries, hospital officials said.

Jewish settlers in the West Bank apparently angered by stonings and firebombings of Israeli vehicles drove into Hebron overnight and smashed windows of Arab-owned cars, an army spokesman said.

News of the vandalism in Hebron sparked rumors of other vigilante action Sunday, including a report denied by the army that Jewish settlers had entered two Arab villages near Bethlehem driving bulldozers to uproot trees and fences.

The most violent clash came in the West Bank village of Beit Ummar where three people were killed. Arab reports said 10 were wounded and 15 were injured by tear gas and beatings.

A Palestinian, interviewed in his Mukassad Hospital bed where he was recovering from a bullet wound in the shoulder, said residents blocked the village entrance after rumors spread that Jewish settlers were planning an invasion.

At 9 a.m. several carloads of settlers arrived, and "they started to shoot the people from 500 meters away," said the man, who identified himself only as Khaled because he feared reprisals.

Khaled said the army had promised to protect the villagers from the settlers but "instead the soldiers started to attack."

The army denied settlers were present and said violence began after dozens of Palestinians thronged to the entrance of Beit Ummar throwing stones and chanting.

The army chased the Palestinians away from the main road, firing tear gas and bullets, officers said.

Quoting officials fom six hospitals, the Palestine Press Service listed the names, ages and hometowns of 25 Palestinians said to be wounded by Israeli gunfire throughout the West Bank and the Gaza Strip.

The army said it could confirm seven Palestinians were wounded.

Israeli authorities clamped curfews on 15 refugee camps or towns, including the Shufat refugee camp within Jerusalem city limits, the army said.