Israel Security Agency (Shabak) chief Yuval Diskin warned the Knesset Defense and Foreign Affairs Committee that Gaza terrorists are planning a large terror offensive against Israel. Diskin says the terrorists are incorporating lessons learned in the Hizbullah war in northern Israel with the new supply of high-grade weapons being smuggled in from Egypt. Diskin recommends a preemptive operation.

--Vice Premier Shimon Peres stated that Israel lost a portion of her deterrence power during this summer’s war in Lebanon.

--The Foreign Ministry has asked the IDF to stop surveillance flights over Lebanon, aimed at monitoring Hizbullah terrorist activity. Defense Minister Amir Peretz previously has stated that Israel would continue the flights because of continuing efforts by Hizbullah terrorists to smuggle weapons.
 
--Bentzy Lieberman, chairman of the Council of Jewish Communities in Judea and Samaria (Yesha) announced that he intends to resign his post.