1. MISHAL IN CAIRO FOR NEGOTOIATIONS ON SHALIT RELEASE.

Bush to go to Jordan but will not meet with Olmert or Abbas; Cabinet: Intensify reaction to Kassams.

2. END TO THE QUARREL?  OLMERT AND PERETZ TO MEET TODAY.

Confidants: It will not be a reconciliation talk.

HATZOFEH

1. Olmert: I did not reveal classified information.  Will meet Peretz in attempt to dispel tension.

CABINET ORDERS PREPARATION OF PLAN FOR WIDE-RANGING ACTION IN GAZA.

Prime Minister insists: "War improved our security situation."  IDF halts attack on arsenals in private homes due to Palestinian human shields, who were joined yesterday by foreign admirers – a priest and a nun.  Two soldiers lightly-to-moderately wounded in Beit Hanoun.

2. NORTH AMERICAN JEWS DONATE NIS 11 MILLION TO SDEROT.

3. 400 SDEROT CHILDREN INVITED TO MACCABI HAIFA UEFA CUP MATCH

4. AGRICULTURE MINISTRY: WE WILL COMPENSATE NORTHERN FARMERS IMMEDIATELY.

MA’ARIV

1. Olmert agrees, Labor ministers and Peretz's confidants are in favor and are pressing but Defense Minister opposes.

COMPROMISE PROPOSAL.

I) Labor party to support open vote for presidency – and will pave Peres's way to sought-after post.  II)  Peretz will give up Defense Ministry, will be named Vice Premier and will receive expanded socio-economic portfolio.  III). Barak to be appointed Defense Minister.  IV) Labor primaries to be postponed – and Chairman will receive quiet for two years.  Peretz refuses.

2. PERETZ: "WHAT WILL ANOTHER DEFENSE MINISTER DO BETTER THAN ME?"

Says in closed conversations: I am continuing at my post, period.

3. HALUTZ ESTABLISHING GENERALS COMMITTEE TO BYPASS ALMOG.

YEDIOT AHRONOT

1. Bush arriving in Jordan next week.  Offers to broker Olmert-Abu Mazen meeting.

US WANTS PEACE SUMMIT.

Americans planning Israeli-Palestinian summit in Amman under aegis of Bush, Abdullah and Mubarak but Israel has made it clear: Conditions are not yet ripe.  Next week: US envoy arriving in Israel.

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SUMMARY OF EDITORIALS FROM THE HEBREW PRESS

Yediot Ahronot decries the quarrel between Prime Minister Ehud Olmert and Defense Minister Amir Peretz as childish and says that, "They have to prove themselves worthy for the senior positions," that they hold.  The editors call on them to either resolve their differences and get on with the business of leading the country or pack up and go home.

Hatzofeh calls on Prime Minister Olmert to dismiss Defense Minister Peretz.

Yediot Ahronot, in its second editorial, is amazed that recent opinion polls show that many Israelis would consider supporting millionaire Arkady Gaidamak should he choose to enter politics.

Yediot Ahronot, in its third editorial, criticizes the failure to follow up on the promises that were made to the evacuees from Gush Katif.