(Yechiel Spira – YWN Israel 11:30PM IL)

SECURITY/DEFENSE:

*IDF soldiers detected two terrorists placing a bomb near Kissufim along Gaza border on Tuesday morning. They fired at them, reporting a hit.

*IDF announced on Monday that terrorist who trained in Iran and was involved in rocket attacks, has been in custody since April.

*The IAF attacked terrorists in Gaza early Tuesday killing one terrorist and leaving six wounded.

*The IDF targeted terrorists operating near Karni Crossing on Tuesday.

POLITICS, DOMESTIC & MORE:

*The Supreme Court on Tuesday rejected an appeal from PM Olmert clearing the way for the state to obtain early testimony from star witness Moshe Talansky, an event that is scheduled to take place on Sunday.

*Gag order on Olmert case due to expire on Wednesday evening Israel time at which time additional details regarding money transfers and amounts are expected to be released.

*PM Olmert will be questioned by police for a second time on Friday (23 May) between 10:00am-11:30am sources in PM’s Office report.

*Defense Minister Ehud Barak on Monday signed a defense pact with his Austrian counterpart Norbert Darabos.

*An Egged bus traveling from Tel Aviv to Yerushalayim caught on fire on Tuesday morning near Shar Haguy. The bus sustained heavy damage. No injuries were reported.

*A policeman on Tuesday afternoon sustained light-to-moderate injuries while pursuing a suspect on Herzl Street in Netanya.

*Head of the Israel Islamic Association northern branch Sheikh Raid Salah was indicted on Tuesday in the Jerusalem Magistrate’s Court on the charge of incitement pertaining to a riot that he headed.

*A Tehillim rally was held at the Kosel on Tuesday evening at 17:30 for Rabbi Mordechai [Tzemach ben Mazel Tov] Eliyahu.

*State Comptroller Micha Lindenstrauss on Tuesday presented a 1,514 page report to Knesset Speaker Dalia Itzik. The comprehensive report details many problems including deficiencies in the national government’s dealing with northern residents during the Second Lebanon War, violence in public schools, environmental and healthcare issues and other topics.

*The US Supreme Court refused to hear an appeal from Accused Nazi guard John Demjanjuk, 88, who was seeking to overturn a lower court ruling ordering his deportation to his native Ukraine.

*Israel is calling for an explanation from the French government after learning a former French diplomat was sent as an emissary to meet with Hamas officials in Gaza. France stated the move was not representative of negotiations but added opening a channel to Hamas is necessary.

*According to Minister Chaim Ramon, a Vice Premier, Israel is indeed conducting talks with Hamas.

*PM Olmert released from Hadassah Hospital following MRI for cancerous prostate growth.

*Water shortage bad news for fruit crops. Prices expected to rise significantly as a result.

*The Israeli Dan David Foundation has awarded its $1 million prize to former US Vice President Al Gore for his work towards international environmental awareness. The ceremony took place on Monday in Tel Aviv University.