A car bomb containing 150 kilograms of explosives was found this afternoon near Dugit, in northern Gaza. Army sappers safely blew up the car, which also contained two mortar shells. The car was found in area under PA military control, and it is assumed that the terrorists planned to drive it into pre-1967 Israel. Another major terrorist attack was thwarted in Gaza this morning, when an IDF force killed five members of an eight-man terrorist cell. The enemy force, loaded with assault rifles and ammunition, was encountered on its way to the Jewish community of Netzarim. Earlier, an IDF position west of Netzarim had been targeted by heavy gunfire, possibly as a diversion; no one was hurt, and soldiers returned fire. The gunfire was traced to a nearby PA police post, which was later destroyed by IDF troops.



The commander of the IDF\'s Gaza force, Brig.-Gen. Yisrael Ziv, told reporters yesterday that regardless of ideological philosophies, \"Netzarim must remain in Israeli hands from a strategic military perspective.\"



Despite increasing attempts to attack the Yesha towns, the army continues to thin out its guard forces in the Jewish communities of Judea and Samaria. Several spots that had been considered key points for the defense of the communities last week are no longer manned. Municipal officials in Yesha are working with the army in an attempt to restore the positions, although they face an uphill battle. IDF officials say that their manpower is engaged in offensive actions, and that they cannot be spared for defense.



The IDF anti-terrorism offensive in Ramallah, now into its third day, was marked last night by the arrest of a top PA Intelligence general, as well as a local Fatah leader in El Bireh. The Israeli forces made extensive searches this morning in offices of the PA and the PFLP terrorist organization. Yesterday they uncovered an explosives laboratory inside a building housing Force 17, Yasser Arafat\'s personal security guard. The lab contained ten powerful explosive charges in various stages of production. The IDF Spokesperson later said that the discovery of the bomb laboratory is yet another example of Arafat\'s role in terrorism against Israel.