The shooting came without warning, several witnesses said.
"There was nothing to justify it," Fayez said. "The soldiers were about 100 meters away from where the people stood. I saw one soldier go down on his knee, point his rifle and shoot. I ran toward Ahmad and carried him until an ambulance came. He was already dead."
Israeli officials did not offer their own account of the shooting. A statement by the military said work on the fence would continue under the added protection of a Border Police unit trained in crowd control while army representatives hold talks with Palestinians in an attempt "to limit rioting in the region."
The military "is saddened by harm caused to civilians," the statement said.
Nilin was the scene of a July 7 shooting that outraged Palestinians and embarrassed the Israeli army.
That shooting was captured on film by a village resident and made public by the Israeli human rights group B'Tselem. It showed an Israeli soldier taking aim and firing a rubber-coated bullet at the foot of a handcuffed, blindfolded Palestinian protester as an Israeli officer held the man's arm. The 27-year-old anti-fence protester sustained a toe injury.
Defense Minister Ehud Barak condemned the soldier's conduct. On Tuesday, the army suspended the soldier's battalion commander for 10 days pending an inquiry.
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boudreaux@latimes.com
Special correspondent Abukhater reported from Ramallah and Times staff writer Boudreaux from Jerusalem.