Yediot Ahronot asks, „Would the reoccupation of Gaza, or a wide-ranging military operation that would include striking at Hamas leaders, really improve the security situation in Israel?” and asserts that, „The struggle against the rise of Hamas demands patience and sagacity; it demands the ability to know what to do and what not to do.”

Hatzofeh strongly criticizes reports that the new Government will be the largest in Israel’s history and suggests that the dissatisfied murmuring in both Kadima and Labor means that, „The seeds of the crumbling of Olmert’s government are being sown even as it is established.” HEADLINES FROM THE HEBREW PRESS HA’ARETZ 1. Labor to receive seven portfolios; Amir Peretz to be Defense Minister and Yuli Tamir Education Minister. APPARENT: 27 MINISTER GOVERNMENT NEXT WEEK. Criticism in Kadima: Claimed in Olmert’s party last night that Peretz won and that there was concern for Government’s future. Coalition agreements: Assessment in Kadima – Agreements with other coalition partners to be secured this week. Crisis with Yisrael Beitenu: Difficulties in negotiations and over disagreement with Kadima over diplomatic clause in draft guidelines. Disappointed in Kadima: Apparent – Olmert to offer Industry, Trade and Employment to Mofaz and Justice to Reichman. 2. CONTACTS TO CALM MOOD IN GAZA STRIP; 40 INJURED IN HAMAS-FATAH CLASHES. HATZOFEH 1. OLMERT-PERETZ AGREEMENT: DEFENSE AND EDUCATION PORTFOLIOS TO LABOR. Peretz to be Defense Minister and Deputy Prime Minister. Labor to receive seven ministers. Lieberman: Opposes clause in agreement that discusses evacuation of communities in Judea and Samaria. Criticism in political establishment: „Peretz has sold out on his social promises.” (…). 2. Following Khaled Mashal’s inflammatory speech against Palestinian Authority: VIOLENT CLASHES BETWEEN HAMAS AND FATAH IN JUDEA, SAMARIA AND GAZA. 3. NORWAY TO ALLOW HAMAS REPRESENTATIVES TO ATTEND ANTI-ISRAEL CONFERENCE ON ITS TERRITORY. 4. ASH-SHARQ AL-AWSAT: OLMERT AND MUBARAK LIKELY TO MEET NEXT WEEK. 5. ISRAEL NOT RULING OUT AMERICAN AID TO PALESTINIAN PROJECTS. MA’ARIV 1. Agreed in secret meeting: Government to be presented next week. DEFENSE MINISTER PERETZ. Olmert close to completing portfolio puzzle. Labor Chairman gives up on Finance, Labor to receive seven ministers. Mofaz heard about his replacement on radio. Lieberman and Yishai threatening: We will stay out. YEDIOT AHRONOT 1. Decided after night negotiations: Peretz to be Defense Minister. OLMERT GOVERNMENT. After portfolio obstacle was dealt with, one of the largest governments in Israeli history, with 27 ministers, close to being launched. Olmert’s achievement: Kadima keeps Finance Ministry. Peretz’s achievement: Labor gets Defense and Education. Biggest losers: Mofaz, who will make do with secondary portfolio, and Reichman, who won’t be Education Minister, despite promises. Labor: Peretz proved himself champion negotiator. Social organizations: He abandoned social issue. 2. FEAR IN TERRITORIES OF HAMAS-FATAH CIVIL WAR. Khaled Mashal labeled Fatah leadership „fifth column” – and ignited conflagration in streets. 25 wounded in mass brawl between Fatah and Hamas activists during which grenade was thrown. 3. ISRAELI ENGINEERS NEAR IRANIAN REACTOR IN BUSHEHR. Invited in order to aid in earthquake damage rehabilitation. 4. ISRAELI BREAKTHROUGH: GENE THAT SAVES HEART PATIENTS. Gene implanted in heart and causes new blood vessels to grow. BreuerPress-Info