HA’ARETZ 1. Despite work halt order – construction of hundreds of flats in Upper Modi’in continues. CIVIL ADMINISTRATION ADMITS: ILLEGAL CONSTRUCTION APPROVED IN ORDER TO CREATE FACTS ON THE GROUND. 2. PALESTINIAN POLICE COMMANDER: WE ARE INCAPABLE OF HOLDING ELECTIONS. IDF eliminates two Islamic Jihad activists in Gaza Strip. HATZOFEH 1. Likud ministers decide that Netanyahu will determine when to quit Government. LIKUD SOURCES: CENTRAL COMMITTEE MUST APPROVE QUITTING. Likud ministers decide that Chairman Benjamin Netanyahu will decide if and when they will quit Government. Assessment is that resignations will be handed in on Sunday. Likud Central Committee activists call for decision to be transferred to Central Committee. Yesterday: Netanyahu sharply attacked by National Union fwhich claimed that he will divide Jerusalem. 2. TWO TERRORISTS ELIMINATED IN GAZA STRIP. 3. NRP CONFERENCE CONVENING IN SHADOW OF CRISIS IN RIGHT-WING UNITY TALKS. (…). 4. PLAN: BLOW UP DIMONA REACTOR. MA’ARIV 1. Senior underworld figure almost slain in luxury Herzliya hotel. UNDERWORLD SUMMIT ENDED IN BRAWL. (…). 2. BATTLE OVER FOREIGN MINISTRY. Both Peres and Livni see themselves as candidates. In Likud: Tension between Silvan and Bibi. YEDIOT AHRONOT 1. Likud ministers outraged: Netanyahu not taking our position into account. NETANYAHU DEMANDS THAT LIKUD MINISTERS RESIGN IMMEDIATELY. Likud Chairman concerned over intensification of opposition within party to resigning from Government. Today: Will demand that ministers submit resignation letters by Sunday. Shalom supporters organizing Central Committee petition against quitting. 2. Following Yediot Ahronot expose: REPRIMAND FOR DUVDEVAN UNIT COMMANDER OVER DISMISSAL OF SOLDIERS WHO WERE AFRAID. Chief-of-Staff: Commanders were insufficiently attentive to soldiers’ plight. ______________________________ SUMMARY OF EDITORIALS FROM THE HEBREW PRESS Yediot Ahronot predicts that Shinui will pay heavily for leaving the Government on the eve of the Disengagement Plan. The editors believe that the party leadership has erred badly by continuing to play the anti-haredi/anti-religious coercion card almost to the exclusion of all else and speculate that many former Shinui voters will flock to Kadima, which sees itself as an inclusive centrist party. Hatzofeh discusses the war on traffic accidents.