\"When I first read the Oslo Agreements, it hit me: They had just signed a document marking the beginning of Israel\'s next war.\" So said some years ago the late Lt.-Col. (ret.) Shlomo Baum, a soldier in Ariel Sharon\'s legendary Unit 101 of the mid-1950\'s and a co-founder of the \'Gamla Shall Not Fall Again\' organization. His prediction seemed to come significantly closer to realization today as Israeli military leaders braced for what they called \"very severe terrorist attacks,\" and as statements by Palestinian Authority leaders became more and more bellicose.



PA Cabinet Secretary Ahmed Abdel Rahman said today, \"The PA now sees itself exempt from all its obligations towards Israel.\" A Hamas commander in Gaza, Mahmoud A-Zahar, similarly threatened this morning, \"All the land conquered by Israel in 1967 is Palestinian land, so it\'s our right to defend ourselves against the occupier in all of Palestine.\" Fatah-Tanzim leader Marwan Bargouti also warned last night, \"The Palestinians won\'t sit with their hands folded in face of Israel\'s crimes.\" In a departure from past policy, the PA refrained from even a formal condemnation of, or a promise to arrest those responsible for, yesterday\'s fatal attack in Jerusalem.



Meanwhile, Israel\'s defense forces continued on high alert following Hamas and Tanzim threats to perpetrate further attacks. The measures proved fruitful this morning, when a suicide terrorist wearing an explosive pack and on his way to committing an attack was arrested at an IDF checkpoint. IDF Intelligence Chief Mag.-Gen. Aharon Ze\'evi (Farkash) told the Knesset Foreign Affairs and Defense Committee yesterday, \"They\'re planning to use everything they have against us.\"



Psagot, adjacent to Ramallah, was targeted by terrorist gunfire last night, the second night in a row after a long period of quiet. An IDF outpost was damaged and soldiers returned fire. This afternoon, Arabs fired at an IDF position east of Tul Karem. A passenger bus in the Shomron was also shot at near Maaleh Shomron; no one was hurt in these incidents.