The Battle Of Bethlehem

(CBS) Palestinian gunmen remained holed up in one of Christianity's holiest sites Wednesday as Israeli tanks rumbled into two more West Bank towns, deepening a major offensive aimed at crushing Palestinian militias in the West Bank.

CBS News Anchor Dan Rather, who is on the scene in Israel, reports that some of the worst battles are being waged in and around Manger Square in Bethlehem.

The bodies of four gunmen lay sprawled on a side street near the Church of the Nativity, the site where tradition says Jesus was born. Rescue services have been unable to reach them because of constant shooting. Ten Palestinian gunmen were wounded, including one who was in critical condition, said the Palestinian governor of Bethlehem, Mohammed Madani.

Inside the church, priests were forced to give refuge to Palestinian police and militiamen, who, according to witnesses, shot their way in on Tuesday after running battles with Israeli troops firing from helicopter gun ships and from tank-mounted machine guns.

Israel Radio claims as many as 200 armed Palestinians are hiding in the Church of the Nativity, with another 80 Palestinian gunmen seeking refuge in the nearby Santa Maria church.