SECURITY/DEFENSE:

*Lebanon on Tuesday accused Israel of violating its air space, reporting air force jets were seen over Lebanese skies.

*Israelis urged to donate blood, with reports stating the terror attack has led to a shortage.

*Rock-throwing attack at a train traveling from Jerusalem to Tel Aviv in the Lod area. One person treated for hysteria.

*27-year-old Arab male arrested on Monday night at Aram Checkpoint on northern Jerusalem border. He was carrying a knife, telling soldiers he planned to stab a soldier.

*Jerusalem: Tuesday afternoon brawl between Jews and Arabs on Tachmuni Street. At least two people injured lightly from knife wounds. The injured were transported to Hadassah Mt. Scopus Hospital.

*One Hamas terrorist was killed and two others injured in an explosion east of Gaza. A statement released by the terrorists stated the explosion was the result of a “special Jihad mission”. No additional information at this time.

POLITICS, DOMESTIC & MORE:

*The soldier who fired at a bound Arab’s legs with a rubber bullet was released from prison. The incident is under investigation.

*Fifth and last day of cross-examination of Moshe Talansky in the state’s case against PM Olmert and the cash envelopes.

*An earthquake measuring 2.8 was felt by residents of the northern border community of Kiryat Shmona shortly after noon Tuesday. No injuries or damage were reported.

*Coinciding with cross-examination of Moshe Talansky, members of the Movement for Quality Government organization protested on Tuesday morning outside the Jerusalem District Court, calling on PM Olmert to resign.

*The “Save the People and the Land” organization is giving a NIS 1,800 prize to the Suissa man who shot and wounded the 2nd bulldozer terrorist.

*A Bedouin child, 3, was stung by a scorpion on Tuesday morning and was listed in serious condition.

*Public Security Minister Avi Dichter pointed out that the 2nd bulldozer terrorist is the third eastern Yerushalayim resident involved in terror since March. He then added he is confident the three are not representative of the population of the eastern capital.

*President Shimon Peres following Tuesday’s Jerusalem terror attack stated Israel cannot and will not tolerate daily terror attacks.

*MK (National Union) Uri Ariel: It is time the bulldozers run over the terrorists’ homes.

*During Tuesday’s day 5 and final day of cross-examination, Moshe Talansky revealed that he also gave money to Yitzchak Rabin.

*DM Barak tells colleagues of Gilad Shalit, who were discharged from IDF today, that he is aware of his moral obligation to do everything possible to bring Gilad Shalit home, and he will. He met with them in the Defense Ministry.

(Yechiel Spira – YWN Israel)