Agreement – Understandings between Gilad, Dahlan and envoy Wolf. Transfer of authority in Gaza Strip: Apparently tomorrow or Tuesday. Rice met with Abu Mazen; to meet Sharon today. Hudna to include halt to attacks on soldiers and settlers. Al-Aqsa Brigades, DFLP and PFLP disavow hudna. 2. SGT.-MAJ. EREZ ASHKENAZY KILLED BY BOMB DURING ARREST OPERATION IN GAZA STRIP. 3. Territories: Dozens of attack warnings over weekend; pessimistic assessments regarding chance to halt terror. NO SIGNS THAT TERRORISTS IN TERRITORIES PLAN TO LAY DOWN THEIR ARMS. HATZOFEH 1. Ceasefire: Mortar attack on Gaza Strip communities over Sabbath. “CEASEFIRE” FOR THREE MONTHS; SHARON CAPITULATES TO ALL PALESTINIAN DEMANDS. Deep Israeli withdrawal in Gaza Strip and Bethlehem first. Palestinians to receive almost free access on central route in Gaza Strip. IDF to now be restricted to shooting at armed Palestinians in Gaza Strip. Additional Israeli concessions: Increased hours at Karni and Rafiah crossings and will allow Palestinians over 35 to leave for abroad. 2. DAHLAN TO GILAD: CONCEDE TRAVEL TO KFAR DAROM – “I DON’T WANT TO SEE JEWS.” Palestinian fighters to return to their positions at Netzarim junction perhaps by tomorrow – bridge for settlers’ traffic to be built at site. 3. DAHLAN DEMANDED – AND OC SOUTHERN COMMAND MAJ.-GEN. DORON ALMOG’S PARTICIPATION IN TALKS WAS HALTED “DUE TO HIS HARDLINE POSITIONS.” Almog opposed opening main route to free Palestinian traffic. 4. NAVAL COMMANDO KILLEED IN INITIATED COUNTER-TERRORIST ACTION AT NETZARIM JUNCTION. Forces acted against senior Hamas terrorists from Al Rol family. OC Gaza: Sharp increase in Hamas terror attacks last month. 5. HAREDIM THROW STONES ON BAR-ILAN STREET; POLICEMAN LIGHTLY WOUNDED. MA’ARIV 1. Intelligence Branch optimistic. ISA pessimistic. Ceasefire on its way. CHANCES FOR QUIET. Agreement on transferring security responsibility for Gaza to Palestinians achieved over weekend. Sheikh Yassin previously announced: Stopping attacks. IDF assessment: Likely to be end of intifada. YEDIOT AHRONOT 1. Hamas commits to hudna – but shooting continues. ISRAEL TO HAND OVER GAZA TO PALESTINIANS. On occasion of Condoleeza Rice’s visit: IDF to leave northern Gaza Strip tomorrow or Tuesday. Attempted attack on US diplomats in Gaza. Israel: We will continue to act on West Bank as usual. ______________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Hatzofeh strongly condemns the government’s proposal to set up a casino in Israel and points out that this plan comes at a time when “the differences between the rich and the poor have jumped to unprecedented levels.” The editors remember a “time when the state could not remain apathetic to poverty.” Yediot Ahronot says “the 1,000 day war, which the Palestinians unleashed against Israel, has arrived at a critical junction. It is leading us in one of two directions: A real attempt to end the violence and to cool the conflict, or a full military conflict. Over the weekend the choice was made – a ceasefire will be given a chance.” The editors claim that despite external pressure from the US and Europe, among others, the real pressure to take this path was from the Palestinian and Israeli street since “After approximately 3,000 dead and thousands injured, we have begun to recognize our real enemy: Terror is bad for the Palestinians, and the occupation is bad for Israelis. From this point it will be possible to make progress.” Yediot Ahronot, in its second editorial, asks, “Who is speaking the truth? The atmosphere or the statistics? According to data published by the Central Bureau of Statistics, the Bank of Israel and the private sector, not only is the recession not over, but it is getting worse. According to the festive atmosphere in the media – the Israeli economy is making a full recovery.” The editor suggests that although we have not reached a final peace agreement with the Palestinians, Israeli are more hopeful for the future and therefore the atmosphere in the street is improving.