Plans to end the five-week stand-off at Bethlehem's Church of the Nativity have hit last-minute snags, after the release of most of those trapped inside had appeared imminent Final arrangements were being made to take away a group of Palestinian militants, after which civilians inside the church - which is surrounded by Israeli forces - would have been freed.

But then buses which had arrived at Manger Square to provide transport left empty, and Israeli military observation cranes were put back up.

The renewed problems are reported to stem from US objections to a European Union representative entering the West Bank church to finalise the deal, and Palestinian demands for safety guarantees for 13 militants who are expected to remain in the compound.

However, EU foreign affairs chief Javier Solana said he did not think the negotiations had broken down.

In another development, the militant group Hamas says Palestinian security forces have begun arresting its members in the Gaza Strip

In the wake of Tuesday night's suicide bombing near Tel Aviv, Palestinian leader Yasser Arafat called for his security forces to prevent what he called acts of terrorism against Israeli civilians.

In response to the attack, the Israeli cabinet has approved possible military action but did not spell out targets - although there is widespread speculation that operations will focus on the Gaza Strip.

THE PROPOSED DEAL

Palestinian negotiators left the Church of the Nativity overnight accompanied by Bethlehem Governor Mohammed al-Madani, who has been in the church throughout the siege.

Under the deal that was being arranged, 26 Palestinians were to be sent to the Gaza Strip.

Another 13 - regarded by Israel as most wanted militants - would go into exile abroad

However, after Italy objected to taking them, it was proposed they should remain inside the church until their final destination was clear.

One of the militants inside the church told Reuters news agency that they wanted a guarantee that an EU monitor would be allowed to remain in the church to protect them after the others left.

"If this guarantee is not given, we will reject the agreement and nobody will leave the church," the unnamed militant said.

According to a Palestinian list, the 13 "most wanted" militants comprise three Hamas activists, nine members of the Al Aqsa martyrs brigade and a senior Palestinian intelligence officer.

In Madrid, Mr Solana - who has been involved in efforts to resolve the situation - said officials were trying to find a country to take the 13.

He also said an agreement was being reached on what to do with the weapons in the church, which has been under siege since 2 April when militants and others sought refuge there during the Israeli offensive in the West Bank.

GAZA APPREHENSION

The bombing in Rishon Letzion, which killed 15 Israelis, is believed to have been carried out by a Hamas member from Gaza.
A Gaza security official was quoted as saying that the arrest of more than a dozen Hamas members on Thursday was a "preventive measure" ordered by Mr Arafat.

The Palestinian leader went on television to say he had instructed his security forces to "confront and prevent all terror attacks against Israeli civilians from any Palestinian side or parties".

However correspondents note that in the past, the Palestinian authorities have temporarily detained Hamas activists, but released them soon after.

The focus of recent Israeli military operations to root out Palestinian militants has been the West Bank.

The army has not so far entered Gaza on a large scale, although there has been growing concern about the number of attempted armed infiltrations of Jewish settlements.

Mr Arafat's move was welcomed as an "incredibly positive sign" by US President George W Bush, who also appealed to Israeli Prime Minister Ariel Sharon to show restraint.