Defiant Israel sets fire to Nativity complex

Israel today defied growing international criticism, including calls from George Bush and the UN for an immediate withdrawal from the West Bank, by pounding Palestinian cities and setting fire to part of the Basilica of the Nativity complex in Bethlehem.

As Colin Powell set off on a Middle East peace mission, Ariel Sharon told his army to continue its fight against terrorism. He then expanded his Cabinet to include a Right-winger who advocates the "transfer" of the entire Palestinian population of three million out of the West Bank to Jordan.

Israeli tanks today opened fire on the Franciscan St Catherine's monastery, setting fire to one of the offices of Bethlehem's governor Mohammed al-Madani on the sixth day of a stand-off with more than 200 gunmen and civilians hiding out in the site marking the birthplace of Jesus. Firefighters were stopped from tackling the blaze. The Pope condemned a "thirst for revenge" on both sides.

The UN Security Council has voted unanimously to call on Israel for an immediate withdrawal. It said it was "deeply disturbed" by Mr Sharon's refusal to implement a previous resolution calling for a withdrawal. "The continuation of violence by the power in control of events on the ground is unacceptable," it said.

Spain's foreign minister said it would discuss introducing possible sanctions against Israel.

Meanwhile Franciscans, who had been working for a peaceful solution to the stand-off at Bethlehem's Church of the Nativity, condemned an Israeli assault as an act of "indescribable barbarity".