Israel extends West Bank grip

Hours after Israeli Prime Minister Ariel Sharon declared war on what he called Yasser Arafat's "terrorist infrastructure" tanks were on the move into two Palestinian towns in the West Bank.

At dawn on Monday, tanks entered Bethlehem, approaching within 500 metres of the Church of the Nativity, the traditional birthplace of Jesus Christ.

In Qalqilya, the Israeli military said it was conducting searches for militants and weapons in order "to destroy the terrorist infrastructure" in the town.

Power and water supplies were cut off as at least 60 tanks took up position, and there were reported of some exchanges of fire.