HA’ARETZ 1. SHARON’S AIDES: WE WILL ESTABLISH NEW GOVERNMENT IN TEN DAYS. Petition to courts likely to delay today’s vote in Likud committee on unity; Peres: they are trying to overthrow me. 2. IDF ADMITS: 29 INNOCENT CIVILIANS KILLED THIS YEAR IN GAZA. Betzelem: real number is almost four times higher; Sharon: IDF soldiers are most moral in the world. 3. NIMRODI QUESTIONED OVER DEAL WITH SHARON. Businessman Aryeh Genger, and PM’s aid also questioned this week. HATZOFEH 1. BASI: COMPENSATION PAYMENTS TO THOSE EVACUATED TO BE GIVEN FAIRLY. Thus said Director of Disengagement Authority Yonatan Basi yesterday. He admitted that some settlers would not return to their previous standard of living. Minister Sheetrit said that „there is no need to go crazy with compensation.” 2. LIKUD REPRESENTATIVES TO VOTE ON BRINGING IN LABOR PARTY. Before vote, court to decide whether to bring opposite petition. 3. Purity of weapons. SHARON: IDF SOLDIERS ARE MOST MORAL. 4. OFER NIMRODI QUESTIONED FOR 6 HOURS UNDER WARNING FOR „ISRAEL LAND DEVELOPMENT CORPORATION” DEAL. 5. SOON: TENDER FOR BUILDING INTERNATIONAL AIRPORT IN EILAT. MA’ARIV 1. CENTRAL PARTY COMMITTEE TO DECIDE Prime Minister to be tested by Likud today. Central party committee members to vote – should Sharon establish unity government with Labor, or call elections. Mofaz: I will stand as Party Chairman at end of Sharon era. 2. WITHOUT SHARON’S KNOWLEDGE: CONTACT BETWEEN KATSAV AND ASSAD. Last May, the President contacted Syrian President and proposed: „Let’s meet.” Assad agreed, on condition that Katsav would represent the government. 3. SHARON: IDF MOST MORAL. This was Sharon’s response to recent episodes. According to IDF data, 20% of Palestinians killed in last four years in intifada – innocent. Investigation into naval commando incident: „nothing immoral in event.” YEDIOT AHRONOT 1. Court to decide this morning: when Likud central party committee can meet. BATTLE FOR UNITY. Likud central party committee to vote today on bringing Labor into government. Still unclear as to when ballots boxes will open. Court to discuss rebels demand to postpone vote.

________________________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Hatzofeh suggests that the tunnel discovered two days ago which reached Israel’s mainland „was probably one of many.” The editors propose that a financial reward be given to those who give information on tunnels as „it is due to luck that these tunnels have been uncovered.” The paper congratulates and thanks the soldiers for uncovering the tunnel and wonders „now that the relationship between Israel and Egypt is warming up, whether Egyptian soldiers will cease to cooperate or ignore the Palestinian terrorists’ actions in building the tunnels.” Yediot Ahronot discusses various issues connected to the Tel Aviv Stock Exchange. BPI-info