"Although it respects Iraq's territorial integrity, Turkey will not tolerate that terrorism be aided and abetted and will not be afraid to pay, whatever the price may be, to protect its rights, its indivisible unity and its citizens," said a statement issued after an emergency meeting here of the country's top civilian and military officials.

The statement came after the parliament on Wednesday gave the government authority to order cross-border military operations to strike at bases of the Kurdistan Workers' Party (PKK) in Iraq's Kurdish-run autonomous north.

"The fight against the separatist terrorist organization will be waged with determination until the very end," the statement said.

The talks were chaired by President Abdullah Gul and were attended by Prime Minister Recep Tayyip Erdogan, the army brass and several cabinet ministers.

The Turkish army said Sunday that heavy fighting erupted in the southeastern province of Hakkari following an ambush by PKK rebels on a military patrol in the area.

Twelve Turkish soldiers and 32 rebels were killed in the ensuing clashes, which also left 16 soldiers wounded.