HA’ARETZ 1. ASSESSMENT IN US: PENTAGON “MOLE” AFFAIR WILL NOT LEAD TO ESPIONAGE INDICTMENT. Apparently: Larry Franklin will be accused of improper handling of classified document. 2. IRAN IMPROVING SHIHAB-3 MISSILE WITH ASSISTANCE OF FOREIGN EXPERTS: MORE DURABLE WARHEAD WITH ENHANCED RANGE. 3. ISRAELI INVENTION: SMALL AIR CONDITIONER FOR MOTORCYCLE. 4. THIS TIME POLICEMEN ATTACKED PHOTOGRAPHER – AND DISTRICT SPECIAL PATROL UNIT DEPUTY COMMANDER WILL BE DISMISSED FROM HIS POST. HATZOFEH 1. Assessment in US: Not case involving espionage – but “mistake” by Pentagon official. SENIOR ADMINISTRATION OFFICIAL: “HE’S NOT A SPY, HE’S AN IDIOT.” American intelligence service investigators estimate that Larry Franklin was unaware of severity of his actions. American administration trying to lower profile due to concern that affair will hurt Bush’s re-election campaign. Denials in Israel: We don’t have spies against US. Assessments: Affair will cause tension in US-Israel relations. 2. KNESSET SPEAKER: HANEGBI SHOULDN’T HAVE TO PAY FOR GENERATIONS OF POLITICAL APPOINTMENTS. 3. EDUCATION MINISTER: WE ARE NOT RESPONSIBLE FOR SOCIAL GAP IN ISRAEL. 4. HISTADRUT PESSIMISTIC: FINANCE MINISTRY ATTEMPTS TO PREVENT STRIKE UNSATISFACTORY. Customs and VAT employees to apparently begin strike on Wednesday, joining local authority employees. If there are no changes, civil servants will join strikers on Sunday. MA’ARIV 1. Expose: Diplomatic attach? who was in contact with Franklin. THE ISRAELI LIAISON. Naor Gilaon, #2 at Washington embassy, had meetings with Larry Franklin, but refused to receive classified document from him on Iran. “My hands are clean,” he told Ma’ariv, “I worked according to procedure.” Pentagon: “Franklin’s not a spy, just an idiot.” 2. POLITICAL QUESTIONNAIRE FOR CIVIL SERVANTS. In wake of Hanegbi affair: Thousands of employees will be required to declare that they have no connection to politicians.

YEDIOT AHRONOT 1. “Mole” affair: Assessment in US – No spy story here. LIAISON: COUNSELLOR AT ISRAELI EMBASSY. FBI monitored diplomatic counselor in Washington, Naor Gilaon, and photographed him with suspected mole. Israel makes it clear: Gilaon’s meetings with him were in context of post. Ambassador Ayalon: Much ado about nothing. Counselor Gilaon vacationed in Israel – and returned to Washington last night in order to broadcast “business as usual.” 2. DUE TO ROCKETS: CLASSES IN SDEROT WITHOUT RECESS. Students to be required to play inside schools. 3. AFTER HANEGBI: DANNY NAVEH’S APPOINTMENTS TO BE EXAMINED. Suspicion: [Likud] Central Committee members “occupied” Health Ministry. 4. CUSTOMS EMPLOYEES: WE WILL CAUSE HAVOC AT BGI. Employees plan disruptions on Wednesday. ______________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Yediot Ahronot comments on the ongoing Pentagon “mole” affair and suggests that, “Israel doesn’t need such a collaborator, certainly not at the current time, which has seen the flourishing of security and diplomatic cooperation between Washington and Jerusalem.” However, the editors believe that given Israeli intelligence services’ track record, and most recently the affair in New Zealand, “It is no wonder that it is easy to attribute to them illogical items such as the Franklin affair.” Yediot Ahronot, in its second editorial, asserts that, “Israel and the US have a great identity of interests and it is this (and the Jews’ legendary power) which has led to cooperation between them,” but cautions that, “Over time, Israel cannot become identified with all that is belligerent and imperialistic in American policy. Our strength is not only that we have influential friends, but also the impression that we are on the right side of justice. We have neglected this simple fact for too long.” Hatzofeh comments on the beginning of the school year and calls on parents to be aware of school safety issues. BPI-info