Gaza on standby as siege nears end

But lined up near Bethlehem's Manger Square to transport 26 militants and Palestinian police besieged in the Basilica of the Nativity to the Gaza Strip in a partial deal to end the month-long stand off. But guerrillas in the Strip braced themselves for an Israeli invasion.

Israel's security cabinet authorised retaliation for the suicide bombing in Rishon Letzion on Tuesday night which killed 15 and cut short Israeli premier Ariel Sharon's visit to Washington. But George Bush appeared anxious to persuade the Israelis to hold back, calling a pledge from Yasser Arafat to reign in terror groups an "incredibly positive sign".

President Bush, speaking at the beginning of a meeting with Jordan's King Abdullah II, said: "Whatever response Israel decides to take, my hope, of course, is that the prime minister keeps his vision of peace in mind. But (we've) got to want peace to achieve peace."

Israeli tanks and infantry are expected to attack Gaza, a 30 mile by two mile strip of land where 1.1 million Palestinians live behind barbed wire in land broken up by Israeli military camps and illegal Jewish settlements. But an offensive could be held up by a break through at the Basilica, which marks the birthplace of Christ, where last-minute preparations to move the 26 were under way as part of a deal negotiated by the European Union and the US Central Intelligence Agency.

The group of 26 men destined for exile in Gaza would have to be moved ahead of any operation in the Strip while 13 other men accused by Israel of terrorism will remain in the church until a third country can be found to take them.

Palestinian militants from Hamas and other Islamic groups have been joined by hundreds of volunteers in preparations to defend Gaza. Every night ordinary office workers and the unemployed don black ski masks and Palestinian scarves to patrol the back streets of Gaza, waiting to ambush invading Israeli troops.

Huge mounds of soil have been erected on almost every street to serve as defensive positions while mines and booby traps have been set in the densely populated refugee camps which have been a hotbed of anti-Israeli activity for decades.