BETHLEHEM, West Bank, May 01, 2002 (United Press International via COMTEX) -- An explosion shook Manger Square and a fire broke out in the Church of the Nativity compound early Thursday morning after shooting erupted between Israeli troops and Palestinians inside.
The church has been the site of a standoff since April 2 between Israel Defense Forces and Palestinians who took refuge inside.
An Israeli military source told United Press International the fire followed a heavy exchange of shooting. More than 180 people are still inside the church.
Palestinian officials said the fighting broke out when Israeli troops stormed the church. The IDF said soldiers surrounding the church fired shots after gunmen fired at them first.
An Israeli military source told UPI Palestinians in the church fired at Israeli troops, but their soldiers just fired warning shots into the air.
Qatari-based al Jazeera television reported, in contrast, that the Israeli army fired flares, smoke and percussion bombs into the church during the exchange of fire.
Palestinian leader Yasser Arafat condemned the standoff at the church, and called the Israelis "terrorists" after learning of the fire there. "This is a crime that cannot be forgiven," he said.
According to tradition, the structure of the 6th-century church in Manger Square was built on the site were Jesus was born.
During the standoff, Israel has let some Palestinians leave. On Tuesday, 26 Palestinians left the besieged church.
Israel has offered the gunmen inside the choice of exile or facing its courts. Palestinians have rejected both options.
An Israeli military source Thursday also said there were flames in residential quarters, but it was not clear whether the fire was limited to those areas only.
Nael Azzhe, of the Bethlehem Fire Department, told UPI two bedrooms were on fire and it was impossible to reach people inside the compound because the lines were dead.
There was no immediate word on casualties.
The Israeli army said it sent two fire trucks to the church, but were denied access.
Azzhe said he had asked the Israeli-Palestinian District Coordination Office to open the road leading to the church and was waiting for a response.
Israel Radio reported the fire had been extinguished.
Meanwhile, Cardinal Etchereray, the retired president of the Pontifical Council for Justice and Peace, will meet with Israeli officials Thursday in an attempt to resolve the crisis in Bethlehem.
(Joshua Brilliant reported from Tel Aviv, Israel, and Saud Abu Ramadan from Gaza.)