Goldberg emphasized: Attorney General’s decision not to make criminal charges does not mean Prime Minister’s actions were kosher. 2. Economics: Statistics show contradictory situation in economy: Increase in demand, but salaries continue to drop and unemployment is on the rise. SIGNS OF RECOVERY OR CONTINUED FREEZE? ECONOMISTS ARE ALSO CONFUSED. 3. 339 PRISONERS TO BE RELEASED TODAY; ANOTHER 99 IN COMING DAYS. 4. ARAFAT CELEBRATING HIS 74TH BIRTHDAY AND MISSES HIS 8 YEAR OLD DAUGHTER. HATZOFEH 1. Preparation in security establishment due to concern over possible disturbances by terrorists who are not being released. TERRORISTS BEING RELEASED – SHOOTING ATTACKS CONTINUE. Israel to release 438 Palestinian prisoners today. High Court of Justice rejects terror victims’ appeal against release. IDF statistics prove: No reduction in scope of terror attacks in Judea and Samaria during hudna. 2. INTELLIGENCE INFORMATION: TERRORISTS WHO PERPETRATED HAR GILO ATTACK CONNECTED TO BETHLEHEM TERROR ORGANIZATION. Security source: Palestinians claim they seized and destroyed large number of weapons in Bethlehem – but have not proven anything. 3. STATE COMPTROLLER: REJECT ALL OF SHARON’S RESPONSES TO KFAR MALAL LANDS ALLEGATIONS. In letter sent to Chairman of Knesset State Control Committee, Goldberg writes that he does not see a contradiction between conclusions reached and Attorney-General Rubinstein’s decision not to open criminal investigation. 4. BRONFMAN TO BUSH: PRESS SHARON TO STOP BUILDING FENCE AND FREEZE SETTLEMENTS. (…). MA’ARIV 1. High alert levels: Warnings of intention to kidnap soldiers and civilians. GROWING FEAR: DANA BEING HELD BY TERRORISTS. Assessment that Dana Bennet was kidnapped for bargaining purposes gaining strength. Abu Mazen in hasty negotiations with terror groups to extend hudna. Today: Israel releasing 339 prisoners. 2. INCREASE IN DEMAND FOR HI TECH EMPLOYEES. First time in 9 months, decline slowing down and demand rose 7.4%. 3. NINTH OF HEBREW MONTH OF AV TONIGHT: PLACES OF ENTERTAINMENT TO CLOSE. YEDIOT AHRONOT 1. IRAN SABOTAGING HUDNA. Security source: Iran responsible for recent terror attacks. Today: 339 prisoners to be released. Sharon-Abu Mazen meeting cancelled. US threatens: We will deduct cost of fence from guarantees. 2. STATE COMPTROLLER AGAINST SHARON. Goldberg strongly attacks Kfar Malal lands episode. “PM acted with conflict of interest, I rejected his claims one by one.” Sharon’s aides: Comptroller is being petty. Today: Court will decide if Gilad Sharon will hand over documents. 3. 9TH DAY OF HEBREW MONTH OF AV: TONIGHT RESTAURANTS AND CAFES TO CLOSE. ______________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Hatzofeh cites recent intelligence reports that Hizballah is threatening a major terrorist attack and notes that Hizballah has greatly built up its forces in southern Lebanon and equipped them with longer-range rockets capable of hitting targets as far south as Haifa. The editors ask, “Will sovereign Israel wait until Hizballah makes good on its threats or will it strike pre-emptively and smash Hizballah’s military network?” The paper suggests that Israel’s, “forgiving attitude towards Hizballah,” is encouraging the latter to influence more extremist elements among the Palestinians and the Israeli Arab community. The editors assert that, “That Hizballah’s military is dispersed among civilian populations is no reason for forgiveness and restraint,” and claim that a harsh strike at the organization will have a deterrent effect not only on it, but on Lebanon, Syria and other terrorist groups. Yediot Ahronot comments on State Comptroller Eliezer Goldberg’s claim – which he recently repeated despite Attorney General Elyakim Rubinstein’s decision not to order an investigation of the Prime Minister – that Prime Minister Ariel Sharon was guilty of a conflict of interest when he allegedly attempted to influence an Israel Lands Administration decision last year. The editors accuse both the public at large and the law enforcement community of being far too tolerant of a lack of public norms regarding proper governance.