Palestinian police station in Ramallah where Israeli soldiers were lynched after it was destroyed by IDF helicopters

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Prime Minister Ehud Barak has called for the establishment of a national emergency government that includes all the Zionist parties: "At present, Arafat does not appear to be a peace partner."

Israel has a direct attack on the Palestinian Authority following the lynching and murder of two Israeli soldiers by a Palestinian mob, assisted by the Palestinian police in Ramallah.

Already yesterday morning, the IDF announced a state of highest alert for terror attacks within Israel after Arafat released dozens of Hamas and Islamic Jihad terrorists.

The PLO announced today that tomorrow would be another "Day of Rage" in the territories after the Friday prayers in the mosques.

The IDF is preparing for unilateral disengagement.

Anti-Semitic attacks against Jews and Jewish institutions came in the wake of the violence.

Prime Minister Ehud Barak postponed the satellite videoconference with leaders of world Jewry, scheduled to take place tonight until the beginning of next week.

New York stands behind Jerusalem - a mass solidarity rally on Second Avenue with the participation of Jewish leadership, local leadership, and representatives from Israel.

The Jewish Agency initiates a public campaign throughout Israel to fly the flag.

"Arafat has decided that he does not want peace and we understand that he evidently doesn't want a partner now," said Prime Minister Ehud Barak at a special press conference that took place following the launching of the Israeli attack on the Palestinian Authority. "I call for the establishment of a national emergency government is needed at present primarily to unite the citizens of Israel. This is a time of trial that demands unity also on the political front. Even more difficult times may lie ahead. Together we will prevail, and nevertheless the State of Israel does not lose hope for security and peace.

In an attack launched by the IDF this afternoon Israeli time, the Ramallah police station and other specific targets were attacked with rockets from helicopters. Specific security points, connected with the Palestinian Authority -- including the "Tanzim" command and PA coast guard boats were also attacked in the Gaza Strip. As we go to press, the fighting continues. Palestinian factors report great tension and fear in Ramallah, Jericho and Gaza.

Last night IDF helicopters attacked the Palestinian officers Academy building in Jericho after a Palestinian mob burned down the ancient "Shalom Al Yisrael" (Peace for Israel) synagogue in the city.

The direct attack by the IDF came after the Palestinian violence had reached a peak with the brutal lynching of two Israeli reserve soldiers, who inadvertently drove into Ramallah. According to reports, the soldiers were arrested by the Palestinian police and brought to the Ramallah police station.

According to reports published during the day in Israel, the soldiers were seized from the police station by an enraged Palestinian mob. One was thrown out of a second floor window to the waiting mob. Palestinian officials stood by or participated in the lynching. The soldiers were taken to Manara Square, Ramallah's main square, where they were stabbed, beaten, kicked, and stoned. One corpse was handed over to Israel, while the second solider was handed over to Israel as he was dying.

The lynch was filmed by an Italian TV crew, but was not broadcast in totality in Israel. Israel's Foreign Ministry is attempting to obtain the complete footage.

At a press conference held today, Barak added that the Palestinian Authority is callously breaking all the agreements that it has signed, and that it freed several of the most notorious leaders of Hamas and Islamic Jihad: "Responsibility for the lynch and the violence falls squarely on the perpetrators, those who sent them, and the Palestinian leadership.

The Prime Minister warned of imminent terror attacks and called for all Israeli citizens to exercise extreme caution and responsibility. He praised the restraint of the Jewish settlers in Judea and Samaria and called on all citizens to abide by law and order. "Our spirit, the Israeli spirit, will win," added Barak.

Already yesterday as the ultimatum issued by Prime Minister Ehud Barak to Yasser Arafat and the Palestinian Authority drew to a close, the IDF and Israeli security forces declared a state of highest alert for terror attacks in the country's major cities. The directive was given following information gathered by the various security forces that Arafat had given the green light to the Hamas and Islamic Jihad to carry out terror attacks against civilians and that he was releasing terrorists from the Palestinian prisons.

Over the last few days, there has been a growing realization in Israel that Arafat that fueling the flames in the Middle East is playing into his hands. Consequently, the chances that US efforts led by President Clinton to restore calm are steadily diminishing.

Minister Benjamin (Fuad) Ben Eliezer, considered one of the Prime Minister's closest allies, yesterday stated that the Oslo peace process is dead, and that we must therefore prepare for war: "I call up everyone to wake up and realize that we are now in a new situation," said Ben Eliezer, directing his call particularly at the Israeli peace camp. "I am not sorry about the Oslo peace process; even with the experience we now have, we had to take that path, if only so that we could look Israeli mothers in the eye and honestly say that we left no stone unturned in our efforts to reach peace and normalization with our neighbors."

At an emergency meeting organized yesterday by Prime Minister Ehud Barak against the backdrop of renewed shooting in the territories, the IDF was ordered to complete its preparations for a unilateral disengagement between Israel and the Palestinians and a separation of the infrastructure and economy between the two sides, marking safe borders for Israel.

Already last night, Palestinian fire against Israeli civilians and IDF forces escalated. The first sign came during the funeral of the late Rabbi Hillel Lieberman, which took place yesterday near Shechem.

Lieberman was murdered on Saturday by Palestinians, while making his way from the settlement of Elon Moreh to Joseph's Tomb. During the funeral procession, Palestinians started throwing stones and shot at the settlers, who returned fire.

During the night, five soldiers and four civilians were hurt in a series of incidents, some of which were reminiscent of Lebanon. Palestinians placed road bombs or dummy bombs on the road, and when settlers or IDF patrols tried to defuse them, they wee fired on. The IDF returned fire. Two Palestinians were killed in one of the battles near the town of Ariel.

The violence, which has become widespread in Israel has also been reflected throughout th4e world in a series of attacks against Jews and Jewish institutions. Jewish Agency Chairman Sallai Meridor has directed Jewish Agency emissaries in all parts of the world to follow such developments carefully, visit the scenes of such attacks, and keep close contact with those injured, offering them every possible form of help.

A particularly large number of anti-Semitic incidents took place in France. In Paris alone 15 such incidents occurred against synagogues and worshippers who were attacked by Molotov cocktails, stoned and threatened. Similarly, Molotov cocktails were thrown at four Jewish day schools, whose pupils were the target of various types of attacks. Jewish restaurants were also attacks and threatened, and a Molotov cocktail was thrown at one of them. Additionally, a Jew cemetery in the city was desecrated.

In the city of Lyon, there were five attacks against synagogues and worshippers using Molotov cocktails, stones, and threats. In Marseille, three attacks on synagogues and worshippers took place. In Lille, Nice, and Strasbourg, there were threats and anti-Semitic graffiti painted on synagogues.

In Brussels, Belgium, a synagogue was stoned and anti-Semitic graffiti was sprayed on the building of a Jewish school. Worshippers at mosques were incited to attack Jews and an ultra-Orthodox Jew was attacked and seriously injured. In Antwerp, two synagogues, worshippers, and a Jewish library were attacked. In Anderlecht, a monument commemorating the Holocaust was desecrated.

In Great Britain, two London synagogues were stoned. A Jewish cemetery in Sweden was desecrated in Malmo and a threatening phone call was received by a synagogue in the city. In Holland, a Molotov cocktail was thrown at a synagogue in the city of Aman and attempts were made to damage two synagogues in other cities. In Uzbekistan a synagogue in Tashkent was totally burned. and its five Torah scrolls destroyed. In Mexico City, the windows of a Jewish school that doubled as a synagogue for the holidays were shattered.

Jewish Agency Treasurer Chaim Chesler expressed shock at the acts of anti-Semitism, and noted that they bear witness to the common fate of the Jew. . Minster for Israeli Society and World Jewish Community, Michael Melchior, convened the Forum Against Anti-Semitism and revealed a series of new figures on the deteriorating situation, based on a report submitted by security personnel who monitor such acts on behalf of the Jewish Agency.

Parallel to security measures and ongoing political efforts, the Prime Minister and his senior officials are putting out feelers to opposition leaders in an effort to establish an emergency government led by Barak. Government ministers believe that such a step is inevitable at this time. A meeting has been setup for this evening between Barak and opposition leader Ariel Sharon.

Likud MK Meir Shetreet joined the call for a national unity government, demanding that Ariel Sharon be appointed Minister of Defense, as a signal to the Palestinians that times are changing. He proposed drawing up a seven-year coalition agreement between the Likud and One Israel, according to which elections will be held in 2003. Whoever is elected will automatically bring in the second party to the new government, based on the terms agree upon today.

To date, Sharon has refused to join the government, but has promised to support Barak from the outside as long as he takes the necessary measures. It is possible that the state of war created today will bring about a change in position and lead to unity.

Bronfman announced that similar rallies were organized by UJA in 59 communities across the USA and Canada. Both Hillary Clinton and Rick Lazio placed blamed for the violence squarely on the shoulders of the chairman of the Palestinian Authority Yasser Arafat.

The Jewish Agency has embarked on public campaign throughout Israel to wave the national flag everywhere, under the slogan "Victory for Zionism." The campaign is aimed at increasing the feeling of unity, hope, and confidence in the victory of Zionism.

As part of this campaign, starting tomorrow members of the Zionist Youth Council and youth movements will distribute Israeli flags at major junctions throughout the country. The Jewish Agency has also approached national institutions, local councils and municipalities as well as businesses, public and private bodies, to fly the flag on buildings, streets, at junctions, homes, and cars.

The Chairman of the Jewish Agency, Sallai Meridor, and its Treasurer Chaim Chesler stressed that by flying the flag we express confidence in the State of Israel and its our ability to continue building and securing the state in order to maintain a just society and fulfill Zionist values.

Both leaders stated, "We must all work to strengthen Israel as a Jewish and democratic state, that provides equal rights to all its citizens and strives for co-existence, dialogue and mutual respect for religious and traditional values, while condemning any expressing of violence."

Prime Minister Ehud Barak will be the main guest at a satellite video conference being organized by the Jewish Agency in conjunction with Jewish community and organizational leaders throughout the world. The conference was due to take place this evening, but has been postponed until the beginning of next week at the request of the Prime Minister's office due to the current emergency situation. Senior representatives from more than 200 Jewish communities, from Anchorage Alaska in the north to Sydney Australia in the south, from Mexico in the west to Tashkent in the east, will participate in the discussion, which will be moderated by Jewish Agency Chairman Sallai Meridor.

The conference, which was initiated by the Prime Minister, is being sponsored by the Jewish Agency, the United Jewish Communities of North America, the Conference of Presidents of Major American Jewish Organizations, the World Jewish Congress, and UIA-Keren Hayesod.

Jewish Agency leaders Alex Grass, Sallai Meridor, and Chaim Chesler have call on the Jewish people to unite around Israel in a demonstration of solidarity and support.

The United Jewish Communities of North America, headed by Charles Bronfman, is organizing a series of activities throughout North America to express solidarity with Israel.

Israel was represented at the rally by Jerusalem Mayor Ehud Olmert and Minister of Immigrant Absorption Yuli Tamir. The conference was organized by Conference of Presidents together with the Jewish Community Relations Council of New York

Today the people of New York stand in unity with Jerusalem. They stand in solidarity with Israel. The voice of freedom and democracy was heard loudly from the streets of New York to the streets of Israel," said Lauder and Hoenlein.

UJC chair Charles Bronfman said, "During this difficult time for Israel, we stand in unity to show our support for the people of Israel, the Israeli government and their brave and courageous Prime Minister Ehud Barak. The Prime Minister has shown the world that he's willing to go more than the extra mile in his quest for peace - he's gone a thousand miles. We pray his visionary leadership will turn his dream for peace into reality.

LEFT TO RIGHT - Yuli Tamir, Israeli Minister of Absorption; Ronald Lauder, chairman, Conference of Presidents of Major American Jewish Organizations; First Lady Hillary Rodham Clinton; New York City Public Advocate Mark Greene; New York Governor George Pataki; Charles R. Bronfman, chairman, United Jewish Communities; and Shmuel Sisso, Israeli Consul General in New York.

Continued violence between Jews and Arabs in Nazareth, Akko and other Galilee and Negev communities has led to increased tension in numerous Partnership 2000 regions. Meir Nitzan, director general of the Jewish Agency's Israel Department, held a conference call yesterday with Jewish community leaders involved in Partnership 2000 regions in the western Galilee, the northern border, the central Galilee, the Segev Karmiel- Bloc, Hadera-Iron and the Galilee Panhandle. Similarly, conference calls between the mayors of the above communities and their partner communities were held.

During the discussions, it was decided that community delegates would come to the Partnership regions in order to express solidarity and promote joint activities such as "Peace Tents," young leadership programs and more. Simultaneously the possibility of visits by community leaders from these areas in Israel is being explored as a way of disseminating information among Jewish communities worldwide.

Against the backdrop of increasing violence in the territories and under the Arafat's leadership, there are signs of a significant rise in the status of Marwan Barghouti, Fatah Secretary general and the uncontested leader of the Tanzim, which has been conducting street battles against Israel in the territories.

Barghouti, in his 40s, began his political career in the late 1970s at the Balatta refugee camp near Shechem. There he organized the Shabiba, the Fatah youth movement, which initially recruited Palestinian youth for community work, helping the elderly, cleaning the streets, and the like. After securing his position, he began organizing the youngsters for violent activities against Israel.

In the mid 1980s Marwan Barghouti was elected head of the Students Union at BirZeit University, near Ramallah. He became close to Professor Sari Nusseibah, then considered one of the leaders of the pragmatic stream in the territories. At the same time, Barghouti was laying the groundwork for the Intifada, until he was deported in 1986 by the late Yitzhak Rabin, then Defense Minister.

Already in the 1980s, the Israeli security forces had marked him as one of the most dangerous Palestinian leaders.

During those years Barghouti avoided being associated too closely with Arafat. He preferred not to remain in Tunis but to travel to Palestinian communities in the Arab world to establish his independent position.

Upon his return to Ramallah as part of the Oslo accords, Barghouti engaged in independent political activity until he was elected Fatah secretary general. In this capacity, he establish the Tanzim, out of sight from TV cameras so as not draw attention.

Marwan Barghouti speaks a fluent Hebrew which he learned in Israeli prisons and some English. He avoids traveling in fancy cars and wearing expensive designer clothes, as is customary among his colleagues in the Palestinian Authority leadership. Barghouti has now burst onto the scene as a popular leader and brutal commander of the violent Palestinian mob.

• VIOLENT Palestinian mob broke into the police station and lunched two Israeli soldiers held there.

• This was a cruel and vicious cold-blooded murder of individuals who lost their way, a murder committed in broad day light in the center of a city by an incited mob.

• We have witnessed the dashing of any element of humane behavior.

• This is a violent of all international conventions including the Geneva Convention.

• The re restraint shown by the IDF during the recent events was part of the responsible policy designed to cool the atmosphere in the region. The IDF continues to believe in a policy of responsibility.

IDF soldiers prepare for Sukkot