HEADLINES FROM THE HEBREW PRESS HA’ARETZ 1. INDICTMENT AGAINST FRANKLIN UNSEALED: ACCUSED OF PASSING SECRET INFORMATION TO ISRAEL AND AIPAC. 2. MOST OF ISRAEL’S FRIENDS IN CONGRESS SUPPORT INCREASED OVERSIGHT OF WEAPONS EXPORTS. 3. SECURITY ESTABLISHMENT DEBATING WHETHER TO HAND OVER ADDITIONAL WEST BANK CITIES TO PA. Continued calm likely to prod Israel into presenting transfer of cities to PA as confidence-building step. HATZOFEH 1. Defense Ministry: No demand to dismiss senior officials in wake of arms sales to China affair. US TO DEMAND: DISMISS DEFENSE MINISTRY DIRECTOR-GENERAL. According to reports, in addition to Amos Yaron, three senior officials whose dismissals US is demanding are: Yehiel Horev, Kuty Mor and Yossi Ben-Hanun. US Defense Dept. spokesman says that US is concerned over Israeli weapons deals. Defense Ministry: „Dialogue currently being held with US administration.” 2. HISTORY: DANNY GILLERMAN UN GA VP. After Abba Eban, Gillerman will be second Israeli to fill post. Will take up post in September. 3. STATE WILL DEFEND SOLDIERS FROM SUITS BY SETTLERS RELATED TO EVACUATION OF COMMUNITIES. 4. TERRORIST ORGANIZATIONS THREATEN TO RESUME ATTACKS IN ISRAEL AFTER DELAY IN RELEASE OF TERRORISTS. 5. EZRA: MKS’ MOVEMENTS DURING DISENGAGEMENT WILL NOT BE RESTRICTED. MA’ARIV 1. Intensifying defense crisis between Washington and Jerusalem. US ALSO DEMANDING REPORT ON ARMS SALES TO INDIA. After finishing checks on weapons deal with China, Americans are moving onto India and Singapore. Defense Ministry appoints Zvi Stauber to coordinate contacts with Washington. 2. REPORT: IMMIGRATION OF FALASHMURA TO COST BILLIONS. Special committee: Each Falashmura immigrant to cost $80.000. YEDIOT AHRONOT 1. DEATH BY PLASTIC SURGERY. (.). 2. RAREST ISRAELI DATE PALM IN THE WORLD. 2,000-year-old date pit found at Masada successfully cloned at kibbutz Ketura greenhouse and is growing into tree. ______________________________ Hatzofeh cites Palestinian Authority Chairman Abu Mazen’s weakness in the face of Hamas and other Palestinian terrorist organizations and suggests that there is no reason for Prime Minister Ariel Sharon to meet him next week. Yediot Ahronot speculates that the Israelis who streamed into Sinai over the Shavuot holiday in contravention of explicit security establishment warnings were motivated – inter alia – by, „The powerful urge for a bit of normality and extreme optimism.” Yediot Ahronot, in its second editorial, strongly criticizes the highly charged atmosphere in the debate over the Disengagement Plan and asserts that, „All those who care about the health of the country must condemn hatred as an illegitimate weapon.” Yediot Ahronot, in its third editorial, believes that, „In the past, an Israeli who made his fortune from gambling was identified with prostitutes and the underworld,” but notes that, „Today, a new Israeli billionaire, a pilot (the son of a pilot who died as a POW) who struck it rich by selling Internet technology that draws people to gambling sites, is considered a symbol of success and a cultural icon.” BPI-info