30,07,2003 HA’ARETZ 1. BUSH: THERE IS A PROBLEM WITH THE FENCE; SHARON: WE WILL EASE PALESTINIANS’ CONDITIONS. US President did not call on Israel to halt construction of separation fence, but White House emphasized: He didn’t change his position.

Bush refrained from using Palestinian term ‘wall’ and stuck to ‘fence’; is encouraged by gestures to Palestinians, but demanded further steps. Intensified his demand that organizations be disarmed as a condition for progress. Israeli sources: “This was Bush’s Likud Central Committee speech.” Sharon promised: We will soon evacuate 12 unauthorized outposts. PA: Intention to continue construction – obstacle for negotiations. 2. BUSH: SYRIAN INVOLVEMENT IN TERROR MUST BE DEALT WITH. 3. Territories: Senior security source: Ceasefire likely to be extended. HUDNA: IDF OPTIMISTIC, ISA MORE DOUBTFUL. 4. PA: Muhammad Dahlan finding it difficult to establish his position. NEGOTIATIONS CONTINUE ON FATE OF WEST BANK FUGITIVES. 5. OLEG SHAICHAT LAID TO REST; SHARON: HIS MURDERERS ARE RESIDING IN ISRAEL ILLEGALLY. 6. MOFAZ SPOKE – AND RESERVISTS LEFT KNESSET IN PROTEST. HATZOFEH 1. (…). AL-QAIDA PLANNING ADDITIONAL ATTACK USING AIRCRAFT. (…). 2. Satisfin Washington and Jerusalem over Bush-Sharon meeting yesterday. Agreements: CONSTRUCTION OF SEPARATION FENCE WILL CONTINUE, EFFECTS ON PALESTINIANS TO BE REDUCED. Bush: I am fully committed to security of Israel – it must take additional steps to ease restrictions on Palestinians. Reiterated demand that PA eliminate terror infrastructure. Bush and Sharon agree not to release prisoners with “blood on their hands” or those likely to return to terror. 3. HUDNA? – NINE SUICIDE ATTACKS FOILED LAST MONTH. 4. GOVERNOR OF BANK OF ISRAEL: GOVERNMENT POLICY HARMING GROWTH AND EMPLOYMENT. MA’ARIV 1. Sharon: Process in danger. Bush: We will not compromise in war on terror. ISRAEL: DISMANTLING OF FENCE IN EXCHANGE FOR ELIMINATION OF TERROR. Sharon and Bush met last night and agreed: No release for prisoners with blood on their hands. In Israel, ceasefire enters testing period. Senior security source: Hudna to continue for some time. Chief-of-Staff pessimistic: Counting the days until the explosion. YEDIOT AHRONOT 1. Sharon presented aerial photos of Iranian reactor. Bush responded: “IRANIANS MUST BE STOPPED.” Sharon and Bush agree: 12 additional outposts to be evacuated; more prisoners to be released. 2. GOOD NEWS: WAITING PERIOD FOR AMERICAN VISA REDUCED TO ONE WEEK. ______________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Hatzofeh mourns the murder of Corporal Oleg Shaichat and praises all those who gave of their time to help search for him. The editors point out that it is likely that Israeli Arabs were involved in this murder and propose that, “Every Israeli who cooperates and takes part in terror should have their homes completely demolished, just as would be done to Palestinian terrorists.” The paper comments on Minister Yisrael Katz’s advocating the death penalty for them and says that, “It is an idea which must be discussed.” Yediot Ahronot discusses the economic outlook for 2004 and criticizes the government for attempting to pass the budget when “it is forced to rely on one state source [of information] alone: the Finance Ministry.”