Troops leave Arafat's compound after prisoners whisked away

RAMALLAH, West Bank -- Israeli forces completed their withdrawal from Ramallah early Thursday, hours after a diplomatic breakthrough ended a siege on Yasser Arafat's compound in the West Bank town. The deal also saw six wanted Palestinians sent to jail, where they will be watched over by American and British wardens.

During the U.S.-negotiated pullout, new violence erupted at another trouble spot -- the besieged Church of the Nativity in Bethlehem, where about 200 people have been holed up for a month.

A fire broke out at the church compound just as a fierce exchange of gunfire began between Israeli soldiers outside the church and Palestinian gunmen inside. Both the fire and shooting ended after about a half-hour, and it wasn't immediately clear how either began.

Also early Thursday, Israeli tanks and armored vehicles moved into the Palestinian town of Tulkarem, witnesses said. Soldiers declared a curfew.

No clashes were reported. The Israeli military had no immediate comment.

The agreement to end months of confinement for Arafat produced a dramatic resolution to one of the thorniest confrontations in the Mideast conflict.

However, Israelis and Palestinians remain far apart on larger issues, such as a cease-fire, a resumption of peace negotiations and an end to the standoff at the Church of Nativity.

At his Ramallah compound, Arafat appeared to shake with anger as he received word of the fire at the Church of the Nativity.

"How could the world possibly be silent about this atrocious crime," he told Palestinian supporters and journalists who rushed into his offices after the Israelis pulled out of his compound.

"I don't care if this room I'm sitting in blows up. What concerns me is what is happening at the Church of the Nativity. This is a crime that cannot be forgiven."

Arafat was expected to remain inside his rocket-scorched offices until the Israelis had finished leaving Ramallah early Thursday, and was likely to remain in the Palestinian territories for at least the next few days.

In the parking lot just outside his office, Palestinian men hugged and kissed each other on the cheeks to celebrate the Israeli withdrawal. Dozens of Palestinian security officers who had been holed up with Arafat chanted and thrust their rifles into the air in unison.