WARSHIPS from Turkey and Greece last night warily circled a rocky east Aegean island, which the two Nato members claim. Each side demanded the other pull back from the area, but with no sign of either doing so.
President Clinton said last night that he had some reason to hope the stand off could be resolved over the next 24 to 48 hours".
Mr Clinton said he telephoned the leaders of Greece and Turkey in an urgent attempt to defuse the stand off that US officials said was close to escalating into a military clash.
Greek officials said they had 12 ships in the area and television showed more vessels from frigates to submarines leaving Greek ports and heading for the region.
Greek journalists put the number of Greek navy vessels around the island by late afternoon at 24, double the Turkish strength, and television stations had pictures of a submarine leaving the Greek naval base of Salamis.
Later, a Greek Defence Ministry spokesman said Greek planes had intercepted Turkish planes 14 times, chasing off 17 Turkish fighters which were violating Greek air space. The Turkish planes were armed with air to air "missiles, he added.
In Ankara the Greek ambassador was summoned to the foreign d'ministry where Turkey called for "the immediate withdrawal of Greek ships" from around the uninhabited rock island.
In Athens the Greek Defence Minister, Mr Gerassimos Arsenis, said "We do not want escalation of the crisis. If the other side is sincere and also wants de escalation, it should remove its presence from the area, from our waters, from our airspace."
He also said a Turkish helicopter had violated Greek airspace over the island, known as Imia to the Greeks and as Kardak to the Turks. The rock, uninhabited except for goats and rabbits, lies between the Turkish coast and the Greek islands of Kalymnos and Kos.
Turkey accused Greece of landing a commando unit there. "Greece has put nine commandos on the Kardak rocks. There is no legal document that gives them the right to do this," the Foreign Minister. Mr Deniz Baykal, told parliament.
The conflict began last week after the captain of a Turkish ship that ran aground on the rock refused to let a Greek tug assist it, saying the territory belonged to Turkey.
Since then Turks and Greeks have planted their own flags there, ripping down those of their rivals. The Greek flag now flies over the outcrop and officials said Greek soldiers were on the island and guarding the flag.
The Turkish foreign ministry called on the Greek troops "based on the Kardak rocks to be immediately recalled and for all signs that attempt to prove Greek sovereignty to be immediately removed."
Turkey's caretaker Prime Minister, Ms Tansu Ciller, vowed the Greek flag would not stay. "We can't let a foreign flag fly on Turkish soil. The flag will come down," she said. But she called for a negotiated settlement to the dispute.
Greece's new Prime Minister, Mr Costas Simitis, earlier issued a warning to Ankara that Greece would not hesitate to defend the island.
The dispute is only the latest of many between the two countries. They are also in almost constant conflict over Cyprus, divided since 1974 when Turkish troops occupied the north during a Greek backed coup.
Athens says Imia was ceded to Greece by Italy in 1947 along with the main islands of the Dodecanese off the Turkish coast including Rhodes and Kos.
Ankara says the treaty ceding the island did not cover Karbak or other similar rocks and islets, and claims the islet belongs to Turkey under a 1932 accord with Italy that all Aegean islands within 18km of a coastline belong to the nearest country.