DATE=05/07/02

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL / PALESTINIANS (S)

NUMBER=2-289499

BYLINE=MEREDITH BUEL

DATELINE=JERUSALEM

CONTENT=

VOICE AT:

INTRO: Palestinian sources say an agreement has been reached to end the Israeli military siege of the Church of the Nativity in Bethlehem. V-O-A Correspondent Meredith Buel reports from Jerusalem.

TEXT: The Palestinians say 13 militants inside the church will to go into exile in Italy and another 26 will be sent to the Gaza Strip in a deal that will end the standoff at the basilica.

An Israeli military spokesman says both sides are very close, but details are still being finalized.

Israeli army officials in Bethlehem say they expect the siege to be lifted very soon.

Such an arrangement would clear the way for Israeli troops and tanks to withdraw from Bethlehem, which is the last major West Bank city to be re-occupied after an Israeli military offensive that followed a series of Palestinian suicide attacks.

U-S and European diplomats have been involved in the negotiations that would send some Palestinians into exile while others would face trial in Palestinian courts.

About 80 people inside the church, including Christian clerics and civilians, would be set free immediately.

Israeli soldiers surrounded the Church of the Nativity in early April after about 200 people, including Palestinian gunmen, took refuge in the shrine when Israeli troops entered Bethlehem. (Signed)

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