JERICHO, West Bank - Israeli soldiers using helicopters, tanks and bulldozers burst into a Palestinian jail Tuesday to seize militants wanted for the assassination of a Cabinet minister, triggering a 10-hour standoff that ended when the prisoners gave themselves up.

Gaza Strip attacking offices linked to the United States and Europe and torching the British Council building in Gaza City. Palestinian gunmen also kidnapped nine foreigners, including an American university professor, and some aid agencies pulled their foreign staff out of Palestinian areas.

The Palestinians blamed the Jericho raid, which left three Palestinians dead, on Britain and the United States. Britain removed its monitoring mission from the jail just before the soldiers went in, targeting militants wanted for the assassination of an Israeli Cabinet minister...

...Israeli officials said recent statements by Palestinian officials and Hamas leaders of plans to release the prisoners, combined with the withdrawal of the monitors, forced them to act.

"We couldn't have a situation where murderers would be walking around free instead of being behind lock and key," Israeli Foreign Ministry spokesman Mark Regev said.

Israel was targeting Popular Front for the Liberation of Palestine leader Ahmed Saadat, who ordered the 2001 assassination of Israeli Tourism Minister Rehavam Zeevi, and four other militants accused off carrying out the killing. Saadat was elected to the Palestinian legislature in January. A sixth militant also was taken...

...The gray-haired Saadat, wearing a light-colored jacket, looked down as he slowly walked out. He did not raise his arms in surrender as many others did. [Wrote the AP reporter, Sarah El Deeb, proudly. -S]

Israel also seized Fuad Shobaki, the mastermind of an illegal weapons shipment to the Palestinian Authority several years ago, and 15 other militants, said Maj. Gen. Yair Naveh, the chief of Israel's central command...

As the Israel Defense Forces siege of the Jericho prison entered its latter stages of standoff Tuesday evening, Yisrael Beiteinu leader Avigdor Lieberman urged Israel's leaders to order the air force to "erase" the jail complex, and to topple its structures onto the Palestinian militants holing up there.

Some two hours after Lieberman spoke to Israel Radio, the six prisoners surrendered to IDF soldiers. [Maybe they had radios in there.]...

..."There is no point in drawing this out," Lieberman said. "The air force should do something. There is no point in endangering IDF soldiers. We should simply erase that building, bring it down on all those hiding out there.

"We are speaking of a wicked gang of murderers who killed a cabinet minister in Israel, people who tried to smuggle arms on the Karine A, people responsible for the killing of dozens of Israelis."

After the siege ended, Labor Chairman Amir Peretz praised the army and government. "Labor, under my leadership, serves as a full partner in the fight against terror and protection of Israeli citizens. This operation had an important message - murderers and terrorists cannot roam free. They must pay the full price for their murderous actions."

Likud Chairman Benjamin Netanyahu also praised the IDF and security forces. "This was the right step that demonstrates that no prize or concessions should be given to terror."

In visit to Europe Egyptian president says halting EU aid funds would cause suffering, boost terrorism in Palestinian Authority. Israel must recognize Hamas, he adds

Egyptian President Hosni Mubarak said that cutting aid to the Palestinian Authority would encourage terrorism.

"The aid is used by the man-in-the-street to buy medicine and to send his children to school. If this money is cut, terrorism will grow and all the (Palestinian) people will suffer," Mubarak told reporters after meeting in Vienna with Austrian President Heinz Fischer, whose country is the current EU president on Monday.

The 25 EU countries had at an informal foreign ministers meeting in Salzburg on Friday said aid could be cut to the Palestinian Authority if the Hamas organization, which won Palestinian elections in January, did not give up violence and recognize Israel's right to exist, according to the Road Map for Middle East peace talks.

"Hamas was elected by the Palestinian people and Israel must recognize that it can form a new government. The renunciation of Hamas of violence and its recognition of preceding engagements (in peace talks) is for a second stage," Mubarak said...