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The Media Line Daily News Focus

1. ISRAEL, HIZBULLAH CLASH ON NORTHERN BORDER… Two Hizbullah terrorist cells backed by barrages of mortar and rocket fire infiltrated Israeli territory along the border at Mount Dov (Shib’a farms) on Wednesday afternoon. One terrorist was killed in the ensuing gunfight and an Israeli soldier was killed and two were wounded by mortar rounds. Israel used artillery and fighter jets in its response, attacking five Hizbullah positions in Lebanon.

2. SHARON DELAYS HANDOVER OF QALQILYA SECURITY CONTROL TO PALESTINIANS… Israeli Prime Minister Ariel Sharon has recanted his promise to Palestinian Authority Chairman Mahmoud ‘Abbas to turn over security control of the town of Qalqilya this week. The delay is attributed to the escalating violence in post-1967 areas that has left three Israelis dead in recent days. The handover is still planned for, some army sources saying it might happen as early as next week. The United States believes ‘Abbas’s assertion that he lacks the tools he needs in order to fight terror. Specifically, ‘Abbas wants more arms for his troops. Israel’s rejection of ‘Abbas’s position is said by some officials to be straining the Jerusalem-Washington relationship.

3. DISCUSSIONS UNDERWAY OVER WHETHER TO CLOSE GAZA NOW… Israeli security officials are discussing the possibility of immediately declaring the Gaza Strip a closed military zone under the pretext of preventing an influx of potentially violent right-wing demonstrators from moving there. If the decision, which is expected by Thursday morning, is taken, non-residents will be completely barred from entering Gaza. The tactic is already being used in a much smaller form. The head of the Israeli army southern command declared a hotel in the Gush Katif enclave to be a closed military zone in order to make the presence of a number of protesters who have made it their base illegal.

4. 53 BILLION CUBIC FEET OF EGYPTIAN NATURAL GAS WILL FLOW ANNUALLY TO ISRAEL… Israel will purchase about 53 billion cubic feet of natural gas from Egypt each year under a contract worth $2.5 billion. The government-to-government portion of the deal will be signed in Egypt on Thursday by Israeli Infrastructures Minister Binyamin Ben Eliezer and Egyptian Oil Minister Samih Fahmi. The actual commercial pact will be signed in coming days by Israeli Electric Company (IEC) and the Israeli-Egyptian consortium East Mediterranean Gas, which is jointly owned by Egyptian General Petroleum Corporation and the private Israeli company Merhav. The gas will begin to flow through an undersea pipeline to the port of Ashqelon on the Mediterranean during the first quarter of 2006.

5. QUREI’ DECLARES STATE OF EMERGENCY UNTIL END OF WITHDRAWAL; CALLS FOR UNITY GOVERNMENT… Ahmad Qurei’, the Palestinian Authority’s prime minister, has declared a state of emergency and said it will continue until the end of Israel’s unilateral withdrawal from the Gaza Strip. Qurei’ stressed the need to ensure that Israel’s evacuation is carried out in a “smooth and orderly” fashion in order to “make the withdrawal a crane to attain our national rights and win the world’s sympathy.” In order to do so, Qurei’ wants all Palestinian factions participating in the oversight and observation of the pullout from the Palestinian side. He said that while he is not happy that Israel’s withdrawal is unilateral, “we welcome the Israeli occupation withdrawal from any part of our homelands.” Qurei’ also cautioned that violence by Palestinians must be prevented so that Palestinian leadership is not held responsible for any attempt to delay or prevent the Israeli pullout.