The Vatican has sharply criticised Israel for imposing "unjust conditions and humiliations" on the Palestinians. It also denounced acts of terrorism against the Jewish state. A strongly-worded Vatican statement called for a proportionate use of force for "legitimate acts of self-defence".
This statement was issued while around 120 Palestinian gunmen remained under siege in the Church of the Nativity in Bethlehem. They took refuge in the church from Israeli soldiers, tanks and helicopter gunships.
Priests at the church were forced to admit the uniformed police officers and militiamen after they shot their way in following running battles with Israeli troops. It was reported earlier, however, that the senior Catholic Churchman in Jerusalem, Michel Sabbah, offered sanctuary to the Palestinians, saying they had disarmed.
An Italian journalist and five of his colleagues are also trapped in the church, which was built on the traditional birthplace of Jesus.
Elsewhere, the Egyptian government has cut 'government-to-government contact' with Israel, and the Indian Foreign Minister said Israel's treatment of Yasser Arafat made the task of bringing poeace to the region more difficult.
In another development, Israeli soldiers are reported to have prevented Church leaders from delivering a peace message to Bethlehem. About 50 Church leaders and clergymen drove with olive branches from Jerusalem to a military checkpoint on the northern outskirts of the West Bank town. However, Israeli soldiers prevented them from entering, saying the town was a closed military zone.
The Israeli army has further expanded its military operation in the West Bank. It has sent tanks and troops to the towns of Salfit and Jenin in a move against suspected Palestinian militants.
Israel tanks are now in several West Bank towns and cities, including Ramallah, Bethlehem, Tulkarm and Qalqilya. The United Nations agency responsible for Palestinian refugees says thousands of people throughout the West Bank have been trapped with dwindling supplies of food and water.
Both Israeli and Palestinian security sources confirmed there had been shooting during the latest action but neither side gave any details of casualties. Several suicide attacks inside Israel are understood to have been launched from both locations.
Palestinian officials say the latest campaign is intended to topple Yasser Arafat and his Palestinian Authority. They have also dismissed a suggestion from the Israeli Prime Minister, Ariel Sharon, that Mr Arafat would be allowed to leave Ramallah on a one-way ticket to renewed exile.
Meanwhile, the UN Security Council is to meet later today in New York to discuss the Middle East crisis for the fourth time in less than a week. Palestinian representatives will urge the council to enforce a resolution it adopted last weekend, calling for Israel to withdraw its forces from Palestinian-ruled areas.
