--Prime Minister Ehud Olmert announced at the weekly cabinet meeting in Jerusalem that efforts to set up a meeting between him and PA President Mahmoud Abbas have broken down because the government refused Abbas's demand that Israel release Arab prisoners without the PA's freeing kidnapped IDF soldier Gilad Shalit.
--The head of Military Intelligence's research brigade, Brigadier General Yossi Baidatz said that Hamas is smuggling anti-aircraft weapoms into the Gaza Strip. Hamas plans to use the weapons against Israeli aircraft in future conflicts.