1. BUSH: I WILL UNDERSTAND IF ISRAEL ATTACKS IRAN.

Told Chirac: Do not rule out possibility that Israel will act; Rice: We do not have enough intelligence.

2. OLMERT AGAINST SDEROT EVACUEES: WE HAVE NEVER RUN AWAY FROM OUR HOMES.

3. CHIEF-OF-STAFF TO APPOINT MAJOR-GENERAL TO INVESTIGATE USE OF CLUSTER BOMBS.

HATZOFEH

1. Olmert to ministers: Get used to the fact that you are members of the Government not a debating society.

TERRORISTS ATTACK WITH ROCKETS – AND MINISTERS ATTACK EACH OTHER.

Olmert attacks Gaidamak: Millionaire's publicity stunt.  Peretz attacks ministerial colleagues: Military has not submitted a plan that I have not approved.  Dichter: We have not ordered IDF to prevent Kassam fire.  Mofaz: If you favor reoccupying Gaza, then say so.  Herzog: That is like asking you to stop crime.

2. IDF CALLS OFF ATTACK ON TERRORIST'S HOUSE IN GAZA STRIP DUE TO HUNDREDS OF HUMAN SHIELDS.

3. IDF CHECKING WHETHER CLUSTER BOMBS WERE USED IN LEBANON CONTRARY TO CHIEF-OF-STAFF'S ORDERS.

MA'ARIV

1. Severe crisis in navy following attack on missile frigate.

NAVY: JUNIOR OFFICERS' PROTEST.

Navy officers: "There is the feeling that the senior command is trying to dump the file on the junior officers."  "Roots are rotten, everything is breaking down here."

2. HALUTZ: CLUSTER BOMBS USED CONTRARY TO MY ORDERS.

Channel 1 reveals: Chief-of-Staff appoints major-general to investigate who thumbed his nose at open-fire orders during the war and got the IDF into trouble.

3. RICE: WE DO NOT HAVE ENOUGH INTELLIGENCE TO ATTACK IRAN.

She warns while in Europe: Close to point-of-no-return.

4. LABOR SECY.-GEN. TO PERETZ: GIVE UP DEFENSE PORTFOLIO.

Even Eitan Cabel is rebelling against the Labor Chairman.

YEDIOT AHRONOT

1. Peretz holds contacts to halt Kassam fire, Olmert outraged: Don't interfere.

ABU MAZEN TO PERETZ: TODAY I WILL DEMAND A CEASEFIRE.

Peretz and Abu Mazen agreed in friendly talk: Palestinians will halt fire at Sderot and IDF will halt military actions.  Olmert's confidants: PM's Bureau in effort to resume talks and Peretz is interfering.

2. HIZBULLAH IN RACE TO REBUILD.

Senior IDF officers: Movement has already restored half of force that was hit during the war.  Has built command centers and recruited fighters.

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SUMMARY OF EDITORIALS FROM THE HEBREW PRESS

Both papers comment on the Kassam missile dilemma:

Yediot Ahronot states that if the Kassam threat could be solved militarily, the only way to do so would be a through a wide-ranging operation.  The other, non-military, option, one the editors say has not been tried, would be to make the Palestinians a concrete offer that their leaders would have an interest in safeguarding.  The current tactic of limited warfare has failed and the Government must decide between the two alternatives.

Hatzofeh claims that, the writing is on the wall and it is clear to all that the only way to neutralize the Kassam threat is to retake the Gaza Strip. The political atmosphere is ripe in Washington, but the window of opportunity will not remain open for long.

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Yediot Ahronot, in its second editorial, accuses Defense Minister Amir Peretz and Prime Minister Ehud Olmert of, "pettiness."  The editors ask if perhaps Peretz is jealous that Arkady Gaidamak is stealing his city with his philanthropic initiative and organizational ability – an ability this Government has been unable to demonstrate. Olmert has had his share of night in luxury hotels.  The editors exclaim that the attacks on Gaidamak are unwarranted.   He is worthy of praise and it should be hoped that other wealthy Israelis will follow suit.

Yediot Ahronot, in its third editorial, decries the racist remarks of Kiryat Motzkin rabbi David Druckman, a paid government official, who advised someone to demand burial only in sections of a cemetery where Sephardic Jews are buried because the Ashkenazi Jews, especially Russian immigrants, are buried together with non-Jews.

[Rami Tal and Haggai Hoberman wrote today’s editorials in Yediot Ahronot and Hatzofeh, respectively.]