Jericho, a dusty oasis with a population of around 20,000 in the valley of the River Jordan, exists in the popular imagination as the scene of the most famous siege in history.

The town is mentioned 70 times in the Old Testament, most notably in the Book of Joshua which recounts an episode in which its walls were circled seven times before memorably tumbling down.

Its ownership has been a matter of dispute virtually ever since, with mortar and machine-gun fire replacing the chanting of the Children of Israel in the battles of the 20th century.

Captured once more by Israel in the Six-Day War of 1967, it was handed back into the control of the Palestinian Authority (PA) in 1994. But Israeli settlers soon moved back and it was almost a decade before it was finally returned to the PA in March 2005.

Jericho found itself at the centre of the latest tug-of-war when the Ma'an Jericho Prison was chosen to house around 100 inmates, a number of whom - including Ahmad Saadat - were being kept under joint British and American supervision.

Mr Saadat, the charismatic General Secretary of the Popular Front for the Liberation of Palestine (PFLP) - a hardline nationalist group which with Fatah comprised the bulk of the Palestinian Liberation Organisation (PLO) - was implicated in the 2001 killing of the Israeli Tourism Minister Rehavam Zeevi.

Wanted by Israel, he found refuge in the fortified home of the late Yassir Arafat in Ramallah, who refused to hand him over. In response, Israel mounted a five-week siege of Arafat's sprawling compound.

This was only lifted when the US and Britain brokered a deal which enabled Mr Saadat and five others to undergo a military trial in a makeshift court within the compound. Four of the men - Hamdi Quran, Basel Al-Asmar, Majdi Rimawi and Ahmed Gholmy - were convicted and sentenced to between one and 18 years in prison.

Mr Saadat and Fouad Shubaki, head of finance for the Palestinian security forces, were never formally tried. They were sent to prison anyway, but the process was disputed by the Palestinian Supreme Court, which ordered their release the same year.

Amnesty International declared that the trials did not follow due process and declared Mr Saadat's incarceration illegal. Israeli hardliners also condemned the deal, believing that it allowed a killer to escape justice and enjoy a 'soft' sentence.

The Palestinian Cabinet countermanded the decision of its Supreme Court, recognising that Mr Saadat and the others were probably safer inside prison that out of it.

The six prisoners were kept separate from ordinary criminals elsewhere in the compound. All had access to television, washing and cooking facilities - with food sometimes brought in from outside - and regular visits. The US and British guards lodged monthly reports on their condition and ensured that sympathetic Palestinian warders did not allow them to escape.

Despite a ban on political activity, Mr Saadat stood in the Palestinian elections in January as the head of a party named in honour of Abu Ali Mustafa, a PFLP leader killed by the Israelis. After their landslide victory, some leaders of Hamas pledged to release Mr Saadat.

The British and US observers left the prison this morning. Jack Straw, the British Foreign Secretary, issued a statement today saying that the observers were withdrawn because the PA had ignored repeated requests to guarantee their security. "Ultimately, the safety of our personnel has to take precedence," Mr Straw said.

Just 20 minutes later, the Israeli troops began the raid. The timing unleashed fury among Palestinians who accused the US and Britain of suddenly and secretly withdrawing monitors in violation of the 2002 agreement.

Times Recommends

• It’s only Brits who don’t appreciate me, says Blair
• Party’s over for Greek graspers
• White House tightens security for Xmas marathon