31,07,2003, HA’ARETZ 1. MOFAZ OFFERS KALKILYA AND JERICO; DAHLAN DEMANDS RAMALLAH. Powell: We will continue to press Israel over separation fence; Dahlan: “Terror infrastructure” – Israeli concept that is not acceptable to us.

2. LAW TO REDUCE PALESTINIAN RIGHTS TO CITIZENSHIP – TO SECOND READING. 3. LOSS FOR MACCABI TEL AVIV IN CHAMPION’S LEAGUE PRELIMINARIES. HATZOFEH 1. Another capitulation to Palestinians: Jews not allowed onto Temple Mount. DAHLAN: WE WILL NOT ARREST, AND WE WILL NOT FIGHT, PALESTINIANS TERRORISTS. Sharon ends successful visit to US with meeting with Vice President. He brought up the issue of releasing Pollard but did not give MKs’ letter. Bush: US will work for establishment of Palestinian State by 2005. Abu Mazen: Sharon is stronger than Ben-Gurion and can do anything he wants; says that Hamas and Islamic Jihad will be integrated into Palestinian political system. MA’ARIV 1. “PREPARING FOR WORST TERRORISM WE HAVE EVER KNOWN.” – thus said Defense Minister, who clarified that he has instructed IDF to prepare for the day after the hudna. Mofaz and Dahlan met last night and discussed implementing next stages in road map. Israel to transfer two additional cities to Palestinians, apparently Kalkilya and Jericho. 2. SHARON: RED CROSS VISITED TENNENBAUM. “Condition of Israeli abductee is not good.” But organization’s spokesman denies it. YEDIOT AHRONOT 1. (…). FROM TOMORROW: PAY CUT FOR HALF A MILLION WORKERS. (…). 2. DECISION TODAY ON WHETHER GILAD SHARON WILL HAVE TO REVEAL DOCUMENTS. 3. MACCABI TEL AVIV LOSES IN SLOVAKIA. ______________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Both papers assess Prime Minister Ariel Sharon’s visit to Washington: Yediot Ahronot refers to US President George Bush and suggests that, “When the President shifts from the extreme position that he is in now (“Israel’s greatest friend”) towards the center, this step will be seen by many as a betrayal of Israel.” However, the editors believe that such a shift is only to be expected if the US wishes to be taken seriously as a fair arbiter and mediator in the Middle East. Hatzofeh asserts that, “Israel was on the verge of an impressive success in destroying the Hamas leadership when the hudna was declared and now it has returned to the starting point – in the campaign to uproot Palestinian terrorism – without any substantive results,” and declares that, “There is no doubt that in Washington, Sharon committed himself to additional concessions without getting anything in return.” The editors believe that, “True, attacks have been reduced but this quiet is apparently temporary until Hamas, Islamic Jihad and the Tanzim feel that they are ready.” __________ Yediot Ahronot, in its second editorial, criticizes Deputy Defense Minister Zeev Boim for inviting reserve officers who happened to also be members of the Likud Central Committee to Tuesday’s Knesset ceremony to honor the nation’s reservists.