The Head of Military Intelligence, Maj.-Gen. Amos Yadlin, said at Sunday's cabinet meeting that there is a possibility of a "large-scale" terror attack on the northern front in the immediate future.

Hizbullah still has demands of Israel, he said, including the matters of Har Dov (Shabaa Farms), Rajer Village and IAF flights over Lebanon.

"Israel's enemies fear a hot summer and that is why they continue military buildup," he said. "However," he estimated, "the Arabs do not want a war while President George W. Bush is still in office."