HEADLINES FROM THE HEBREW PRESS

HA’ARETZ 1. ATTORNEY GENERAL: CONSIDER WHETHER SHARON’S AID TO NEIGHBORS WAS CRIMINAL. Attorney General’s office to examine whether investigation is necessary; neighbor’s compensation frozen. 2. SHAKY ECONOMY – REVERSAL OF GROWTH TREND. 3. JERUSALEM ENVELOPE PROJECT “TO ANNEX” 50,000 PALESTINIANS. 4. NASRALLAH: NEGOTIATIONS OVER MIA’S TO BE RENEWED; ISRAEL: STILL NO PROGRESS. 5. SHARON REJECTS BLAIR’S REQUEST: PREFERS EGYPTIAN GAS TO PALESTINIAN GAS. HATZOFEH 1. (…). CONCERN: WAVE OF “SETTLING ACCOUNTS” ENDANGERS LIVES OF TEL AVIV RESIDENTS. (…). 2. SECURITY OFFICIAL: CRISIS IN NEGOTIATIONS OVER TRANSFER OF JERICHO AND KALKILIYA DUE TO ARAFAT’S INSTRUCTIONS. According to security source, Arafat forced his loyalist Haj Ismail on Dahlan as Head of the Palestinian team who will meet with Israel – and instructed him to insist on removal of two additional checkpoints around Kalkiliya in contradiction to understandings reached between Dahlan and Mofaz. 3. ATTORNEY GENERAL INSTRUCTS HIS OFFICE TO EXAMINE SHARON’S INTERVENTION IN KFAR MALAL LAND. Attorney General’s office setting up special team. Rubinstein instructed Transport Ministry to delay settlement until investigation has ended. Businessman David Appel again questioned on two bribery incidents. 4. CHANNEL 2: MAJ.-GEN. (RES) ILAN BIRAN VISITED GERMANY IN ORDER TO MAKE PRISONER SWAP DEAL WITH HIZBULLAH. Nasrallah: If prisoner swap deal fails we will kidnap additional Israeli soldiers. Iran: if Israel attacks nuclear facility in Bushehr, she will pay a heavy price. MA’ARIV 1. (…). CRIME RAGING AMONG US. (…) 2. SURPRISING MESSAGE FROM SAUDI ARABIA. Official sources in Riyadh asked Israel: give us information on money transfers to Hamas. Jerusalem: this is just an initial sign. 3. PROGRESS IN CONTACT Diplomatic source: terrorist demands are slightly less crazy, but still not realistic. Nasrallah threatens: we will kidnap Israelis. YEDIOT AHRONOT 1. WE WILL EXAMINE THE MATTER OF “SHARON AND HIS FRIENDS.” Attorney General to decide: should there be a criminal investigation against Sharon over aid to Kfar Malal friends. Compensation payments to his friends frozen. Sharon’s supporters: what do you expect, that he won’t help a friend? 2. Unemployment widens: 3.5% jump in job seekers. UPHEAVAL IN DEALING WITH UNEMPLOYED. (…). 3. HIZBULLAH: CONTACTS WITH ISRAEL FOR PRISONER SWAP. Through new German mediator. 4. SHARON DECIDES: GAS FROM EGYPT NOT GAZA. “Palestinians will use money for terror.” ______________________________________________________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Hatzofeh asserts that the delay in transfer of security control of various Palestinian cities to the Palestinian Authority is temporary and asks whether “there is a chance that the security establishments in Jericho and Kalkiliya will prevent wanted fugitives and other terrorists from carrying out terror attacks?” The editors answer that such a scenario is very unlikely given the Palestinian Authority’s past record in fighting terror organizations, and argue that “the terrorists operate openly, in front of the Palestinian security services, but they, purposefully ignore these events.” The paper adds that, “If we add to this Defense Minister Shaul Mofaz’s comments…that Arafat is giving a green light to renew terror attacks, it is clear that…the problem is that Abu Mazen’s government has yet to recognize that the Palestinian Authority must operate in a serious and real manner against terror organizations and their infrastructure.” The editors regret that the Israeli government has not applied more pressure to the Palestinian Authority to do so. Yediot Ahronot comments that Prime Minister Sharon’s intervention on behalf of his Kfar Malal friends “does not appear to be that serious” as he only asked for special consideration for them, but did not for example threaten to sack Transport Ministry’s Director. The editors do however express concern over the long list of scandals that currently surround the Prime Minister and say that it is not necessarily the content of these different episodes, but the fact that the Prime Minister “does not think that he should give some kind of explanation for his actions” and that he does not see “any reason to be careful in his actions.”