Portland police are drafting "an immediate action plan" to remove the

encampment downtown if Mayor Sam Adams gives the signal, sources said Wednesday.

The escalation in planning comes a day after police

an incendiary device at the

, and Adams said the person who planted it was linked to the camp.

The mayor, on OPB's "Think Out Loud" program, again said that the camp must confront its problems, including drug use, assaults and a rise in crime in the surrounding neighborhoods. Then he put out a blunt warning: "They have to deal with it. If they don't, then we have to deal with it."

The pressure went up again Wednesday afternoon when the Bureau of Developmental Services

to the Parks and Recreation Bureau for damage to Chapman and Lownsdales squares since the occupation began Oct. 6.

The citations direct the parks bureau to stop the camping, remove human and other waste, to stop using an electrical conduit as a support for overhead tarpaulins, to remove all the structures, to cut off the generator and to shut down all noise-making machinery between 10 p.m. and 7 a.m.

Mike Abbate, Parks and Recreation director, forwarded the citations to Occupy Portland with a

saying the bureau would not issue a permit to camp in the park. "Please move to correct these violations," Abbate's letter said.

Occupy Portland demonstrators said police descriptions of problems in and around the camp in Chapman and Lownsdale squares are "a bunch of lies," said Ethan Edwards, who lives in the camp and works in the information booth, at the nerve center of the protest.

"We are a peaceful protest. We have been very clear on that, with the police and with the public," Edwards said.

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The incendiary device, which the police called a Molotov cocktail, was found on a staircase between two escalators after someone called 9-1-1 to report it. No one was hurt, but a minor fire damaged the stairs.

Police spokesman Lt. Robert King said police have been investigating reports for 10 days that a person or group of people at the downtown encampment has been making or storing Molotov cocktails.

But Jeff Billings, who lives in the camp and patrols it as a member of its peace-and-safety committee, said he knew the man involved, although he did not know his name.

Billings said the man was "high as you can be" when he filled a soda can with gasoline and took it to the World Trade Center. Billings said he believes the man spilled some of the gasoline then set it on fire.

"That was in no way a Molotov cocktail," Billings said. "Didn't have anything to trigger it. Believe me, I've built 'em. This wasn't a Molotov cocktail."

Billings also said he believes the man was arrested, but there is no record of such an arrest.

Protester Cameron Whitten said Wednesday that he and his wife were at the World Trade Center Tuesday evening and saw a man there who asked for a cigarette. Whitten identified him as someone who goes by the name The Manchurian Candidate.

When Whitten and his wife turned the man down, Whitten said, he walked away, but a few minutes later, Whitten heard a commotion and saw the man running west from the World Trade Center.

Police draft Occupy Portland 'Action Plan' 14 Gallery: Police draft Occupy Portland 'Action Plan'

In a

on its website Wednesday, Occupy Portland said: "Certain incidents within our camp have gained widespread local media coverage, which some feel has detracted from the message of our movement. This coverage exposes the realities of economic injustices in America, specifically in Portland, which intensifies our call for systemic change.

Wednesday was the encampment's 34th day. The Occupy Portland demonstration began Oct. 6 with 10,000 people marching in downtown, and then several hundred violated the city's anti-camping ordinance to take over Chapman and Lownsdale squares.

The city has chosen not to enforce the ordinance, but Adams and other city officials have been putting more pressure on Occupy to figure out how to exit the parks.

Staff writers Maxine Bernstein, Noelle Crombie and Stuart Tomlinson contributed to this story.

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