HA’ARETZ 1. INCREASE IN NUMBER OF POOR: 25% OF ISRAELIS. National Insurance report: Another 46,000 fell below poverty line this year. 2. Senior doctors: Overall problems demanded use of blood thinners under tight supervision; heart catheterization should have been postponed. SHARON DIAGNOSED WITH SERIOUS HEART DISEASE DURING FIRST HOSPITALIZATION. (…). Ailments discovered by Sharon’s doctors: Irregular heartbeat that creates blood clots – not reported to public. Reverse blood flow through heart – not reported to public. Disease of brain blood vessels that increased chances of hemorrhage – not reported to public. Birth-defect hole in heart likely to allow clots to reach brain – reported to public. 3. OLMERT TO SAY THIS EVENING: ARRANGEMENT PREFERRABLE BUT OUR FUTURE WILL NOT DEPEND ON OTHERS. US Ambassador: We will not talk to PA ministers from Hamas. 4. PERETZ: GOAL – PEACE AGREEMENT BY 2010. Labor Chairman to Herzliya Conference: We will compensate every settler who seeks to leave home in West Bank. HATZOFEH 1. Former Chief-of-Staff sharply attacks call for additional uprooting. YAALON: 1967 BORDERS ARE NOT DEFENSIBLE. Former Chief-of-Staff, who addressed Herzliya conference, sharply attacked Israeli security policy. In his words, Palestinians do not recognize Israel’s right to exist and, therefore, any border determined will be violated violently. “Israel hasn’t created credible deterrence against rockets.” Yaalon also referred to proce of disengagement and said that situation has been created in which Israel has made concessions without getting anything in return and, as a result, dangerous Hamastan has been established in Gaza Strip. 2. POVERTY REPORT: 738,000 POOR CHILDREN. 3. PALESTINIAN AUTHORITY ELECTIONS TO BE HELD IN JERUSALEM TOO. 4. SIGNS THAT KHADDAFY WILL DECLARE NORMALIZATION WITH ISRAEL THIS WEEK. 5. AGAIN: KASSAM ON SDEROT. MA’ARIV 1. Today: Ehud Olmert’s Herzliya speech. “I AM NOT AFRAID OF A HAMAS VICTORY.” In first diplomatic speech, Olmert will make it clear: Israel is too strong to fear PA elections. He will refrain from committing to another disengagement. YEDIOT AHRONOT 1. Today: Acting PM to declare, in first public appearance: OLMERT: ADDITIONAL DISENGAGEMENT WOULD BE MISTAKE. Will tell Herzliya Conference: “Preferable to reach agreement with Palestinians and not to take another unilateral step.” 2. Tomorrow: PA elections. FATAH INCREASING LEAD OVER HAMAS. Yesterday: PA polls expected 10% gap in Fatah’s benefit. ______________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Yediot Ahronot discusses tomorrow’s Palestinian Authority elections and suggests that, “Like most Palestinians, as reflected in the polls, the Israeli center also knows that the elections won’t change much in the situation of the residents of the territories.” The editors believe that a settlement based on a return to something close to the 1967 lines and a Palestinian state with its capital in Jerusalem is inevitable. Hatzofeh analyzes the National Insurance Institute’s annual poverty report, which was issued yesterday, and accuses the Finance Ministry of indifference to the plight of Israel’s poor families.