Palestinian officials have rejected an Israeli deal for the surrender of armed Palestinians holed up in Bethlehem's Church of the Nativity. It calls for the militants to face trial in an Israeli military court or face permanent exile. Israeli spokesman Rannan Gissin said the offer was delivered Sunday to Palestinian leader Yasser Arafat by U.S. Secretary of State Colin Powell. 

Israeli forces laid siege to the church after Palestinians, including some police, sought shelter inside the shrine when Israeli troops entered the West Bank city two weeks ago. Dozens of Christian clergy are also trapped inside the landmark church. The Israeli Supreme Court gave the Israeli army permission to bury Palestinians killed during the Israeli invasion of a refugee camp in the West Bank town of Jenin. 

Under the deal, Red Cross workers will accompany Israeli troops as they bury the dead and next of kin will assist in identifications and burials. The move could help clear up the dispute over how many Palestinians died in Jenin. Israel says about 100 Palestinians were killed, but Palestinians put the number much higher and say Israel secretly buried victims in mass graves. 

Earlier Sunday , Israel said it will temporarily lift the ban on access to some areas of the West Bank occupied by Israeli forces since March 29. Once the ban is lifted, humanitarian groups will be able to distribute badly needed supplies, and journalists will be able to take a look at what Palestinians say has been severe devastation. Some areas will remain closed. 

Some information for this report provided by AFP and AP.

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