An Arab terrorist from eastern Jerusalem sped with a bulldozer down Jerusalem's busiest street just before noon, ramming buses and crushing cars. At least three people were murdered and 45 injured in the unprecedented attack.

Two policemen caught up with the tractor and climbed inside, after a policewoman shot the driver but did not kill him. They first struggled with the terrorist-driver, and the driver stopped - but then abruptly started up again, until he was shot and killed by Moshe Plesser, whose brother-in-law was killed in the Merkaz HaRav Yeshiva massacre a few months before.
 
Three Years Ago Today at IsraelNN
Prime Minister Ehud Olmert stated Israel will remain firm in her refusal to negotiate with terrorists, stating capitulation will only bring the next terror attack upon us. Olmert during the past week has stated repeatedly that Israel will not enter into talks with Hamas. Releasing an ultimatum statement in response to a terrorist ultimatum, officials in the Prime Minister’s office stated there would be no concessions made to “murderous terrorist blackmail” attempts--adding no negotiations will be launched towards the release of prisoners. 

Thirty-one Years Ago in Israel
Prime Minister Menachem Begin announced that Israel would willingly look at an Egyptian peace plan, but would only enter peace negotiations with Egypt without preconditions.