Three arrested in anti-Israel protest

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Protesters attempt to break into a dinner for the Australia Israel leadership forum at the Grand Hyatt in Melbourne. (AAP)

Protesters attempt to break into a dinner for the Australia Israel leadership forum at the Grand Hyatt in Melbourne. (AAP)

Police used horses and capsicum spray at a demonstration by pro-Palestinians targeting a meeting of Jewish leaders.

Three protesters have been arrested after storming the doors of a Melbourne hotel to gain entry to a major meeting of Jewish leaders.

Police say the three were removed from the Park Hyatt Hotel in East Melbourne as up to 200 protesters tried to breach police lines at a side entrance to the hotel which is hosting the Australia Israel Leadership Forum.

Hundreds of Jewish delegates are inside where Deputy Prime Minister Julia Gillard and Israeli senior Vice Prime Minister Slivan Shalom are due to attend.

The pro-Palestinian protesters have dispersed for now to attend a strategy meeting at nearby Trades Hall.

But dozens of police including members of the Dog Squad and the Mounted Branch remain guarding entrances to the hotel.

Sergeant Steve Bourke said the three protesters had been released pending further inquiries.

He said capsicum spray was used to repel several demonstrators who caught police members between them and an entrance. There have been no injuries he said.

Sergeant Bourke said the protesters had breached an earlier agreement with them for a peaceful protest.

"We are fairly disappointed that they have broken that agreement. At the end of the day three people have gained entry, we're talking a few metres into a foyer, they were apprehended and their details have been obtained and we are following up inquiries in relation to those," Sergeant Bourke said.

"A police radio went missing amid the scuffle," he said. Protester Hisham Moustafa said he was angry about the presence of Mr Shalom, whose government he described as "war criminals".

"They are being entertained at this hotel by our political representative Julia Gillard. We are extremely ashamed and embarrassed and feel frustrated at the gall of Julia Gillard," he said.

Mr Moustafa said four protesters were hit with capsicum spray at the height of the scuffle, which escalated at 6.40pm. "The police got pretty aggressive and our people retreated.

We got close to the glass (doors) and the police just pushed us back," he said. Australia Israel Leadership Forum chairman Albert Dadon said the protesters were initially peaceful.

"But our culture in Australia is that we obey the rule of law and if you do something that infringes the law then it's fair game for the police to arrest you," he said.

Dozens of police remain guarding the entrances to the hotel wary of the protesters return.

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