HOWZAT

"I understand that the gunmen are on the second and third floors. The windows of the fifth floor are all broken," he added.

"There have been some movements at the windows, but we haven't seen any sign of any hostages."

There were conflicting reports about the number of hostages inside, with police initially saying there were none, but other officials saying 10 Israeli citizens are being held by at least three gunmen.

The Israeli embassy, which has said there were 10-12 Israeli citizens among those trapped or held in Bombay, denied any Israeli forces were involved in the assault.

However Israeli defence experts, speaking to The Jerusalem Post, criticised the way India had handled the rescues. Indian commandos had acted prematurely with gathering enough intelligence first, possibly risking lives, they said.

Last night, seven people were rescued from the building, including the two year old son of Rabbi Gavriel Noach Holtzberg, the main representative at the Jewish centre.

A cook at the centre told an Israeli newspaper how she escaped with its director's two-year-old son.

Sandra Samuel, 44, told Ha'aretz she had barricaded herself in a first-floor room for 12 hours after the gunmen entered the building and only looked outside when she heard the cries of a small child.

"I just grabbed the baby and ran out," said Mrs Samuel, adding that the centre's caretaker Zakir Hussein, 22, who had been hiding with her, escaped with them.

It was unclear if Rabbi Holtzberg was still there.

During the night, a militant inside the building telephoned a television channel to offer talks with the Government in exchange for the release of hostages. He complained about Indian abuses in Kashmir.

"Are you aware how many people have been killed in Kashmir? Are you aware how your army has killed Muslims? Are you aware how many of them have been killed in Kashmir this week?" he said.

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