CEC Disqualifies Balad and MK Azmi Bishara
Azmi Bishara Web site, January 1, 2003
On December 31, 2002 the Central Elections Committee (CEC) voted to disqualify the National Democratic Assembly (Balad) and its candidate, MK Azmi Bishara, from participating in Israel's general elections scheduled for January 28, 2003.

Three Palestinians shot dead in Gaza Strip; Homes of two Palestinian activists destroyed
Al-Bawaba, January 1, 2003
Three Palestinians were killed by Israeli troops Wednesday evening as they approached the settlements of Elei Sinai and Dugit, in the northern Gaza Strip.

Palestinians fear the worst if US strikes Iraq
ProLog, December 31, 2002
RAMALLAH, West Bank, Dec 31 (AFP) - Palestinian officials are increasingly worried that Israel will use the opportunity of a US war on Iraq to launch widescale operations against the Palestinian Authority, sweeping it and its leader Yasser Arafat into exile. "We fear Israel will force president Arafat and the members of the Palestinian administration into exile and displace the population in an internal transfer operation," said Mamduh Nawfal, an adviser to the Palestinian leader.

Pope calls for Middle East peace
BBC, January 1, 2003
Pope John Paul II has used his New Year message to appeal for peace in the Middle East.

Israel bribery crisis deepens
BBC, December 31, 2002
Israeli Prime Minister Ariel Sharon has sacked a deputy minister allegedly involved in a financial scandal in his governing Likud party.

Detained student's death investigated
The Toronto Star, January 1, 2002
Hebron Palestinians say assaults on rise -- HEBRON, West Bank—A Palestinian high school student who had just finished prayers at a Hebron mosque was detained Monday night by Israeli border police in this bitterly divided West Bank town. His badly beaten body was found by friends 20 minutes later in the middle of a road a kilometre away, family and neighbours said yesterday.

Israel agrees to guarantees conditions - US sources
Globes, January 1, 2003 
Israel agrees that the loan guarantees will not be used for settlements. -- Bush administration sources are hinting that Israel has officially accepted US conditions that the $8-10 billion in loan guarantees will not used in the territories.

Palestinian Seeks Reform by Following the Money
New York Times, January 1, 2003
RAMALLAH, West Bank, Dec. 31 — Waving reams of fiscal data, a small man in a gray suit charged the barricades of Palestinian reform here today.

1 percent negative growth in 2002 is worst in the West
Ha'aretz, January 1, 2003
Israel's 1 percent negative economic growth was the lowest recorded in the West in 2002, according to preliminary figures released by the Central Bureau of Statistics yesterday.

Ya'alon warns of `terrible crisis' without an additional NIS 9 billion for defense
Ha'aretz, January 1, 2003
If the Israel Defense Forces' budget for 2003 is not increased by NIS 9 billion, "we are liable to find ourselves in a terrible crisis," IDF Chief of Staff Moshe Ya'alon warned the Knesset Foreign Affairs and Defense Committee yesterday.

Azmi Bishara barred from running in Israeli elections
Al-Bawaba, January 1, 2003
Israel's election commission voted on Wednesday to bar an Arab party and its leader from running in the January 28 general election.

Background: Israel's watchdog turns on its master
Ha'aretz, January 1, 2003
The Central Elections Committee, the government watchdog meant to oversee the democratic process, appeared to have turned on its master this week, raising fears over the direction of Israeli democracy as the panel quashed the Knesset candidacy of Israel's best known Arab lawmakers, while giving a green light to a former senior aide and onetime successor to Meir Kahane.

Katsav: Banning candidates no cause for crisis in Arab sector
Ha'aretz, January 1, 2003
President Moshe Katsav said Wednesday that in his opinion the Central Elections Committee (CEC) decision to disqualify Arab candidates did not justify a break of trust between Arabs and Jews in Israel.

MK Bishara's Balad party disqualified from Knesset vote
Ha'aretz, January 1, 2003
The Central Elections Commission voted after midnight last night to disqualify MK Azmi Bishara's Balad party from running in the next Knesset elections. The vote was 21 to 20.

IDF kills 3 Palestinians in forbidden area near Gaza settlements
Ha'aretz, January 1, 2003
Three Palestinians were killed by IDF troops early Wednesday evening as they approached the settlements of Alei Sinai and Dugit, in the northern part of the Gaza Strip.

Israel destroys militants' homes
icWales.com, January 1, 2002
Israeli soldiers destroyed the homes of two Palestinian militants in the West Bank and Gaza Strip today. Forces demolished the home of a suicide bomber from the al-Aqsa Martyrs Brigades in a village near the West Bank city of Nablus.

Arafat predicts increased violence between Israelis and Palestinians in event of Iraq war
Al-Bawaba, December 31, 2002
Palestinian President Yasser Arafat was quoted on Tuesday as saying war against Iraq would lead to increased violence between Israelis and Palestinians because world attention would be focused elsewhere.

Arafat declares he is ready for cease-fire with Israel
Taiwan News, January 1, 2003
Yasser Arafat said yesterday he welcomes a U.S.-backed call for an immediate cease-fire with Israel, but stopped short of committing to steps the Palestinians would be required to take ahead of such a truce.

Palestinian 2003 budget upholds pledge to eradicate corruption
MENA Report, January 1, 2003  
The Palestinian Authority’s budget for fiscal year 2003 was presented Tuesday, December 31, to the Legislative Council (parliament) by Finance Minister Salam Fayyad. The $1.28 billion budget projects a $747 million deficit and $531 million revenues, most of which derived from external donor support.

Israeli Arabs May Boycott Election
Bradenton Herald, January 1, 2002
JERUSALEM - The possibility of an election boycott by Israel's Arab minority grew stronger Wednesday after a parliamentary committee banned an Arab party and its leader from running in the Jan. 28 vote.

Palestinian lawyers head for showdown with Arafat over A-G
Ha'aretz, January 1, 2003
Palestinian lawyers said Wednesday they would go to court to have Palestinian Authority Chairman Yasser Arafat's appointment of a new attorney general overturned as a violation of the constitution.

Likud brands Mitzna a left-wing extremist
Ha'aretz, January 1, 2003
Labor Party Chairman Amram Mitzna is prepared for more far-reaching concessions to the Palestinians than even former prime minister Ehud Barak, and that endangers the state - this was the single message presented yesterday by the Likud's election campaign team prior to presenting its campaign commercials next week.

CEC pressured to reinstate Mofaz
Ha'aretz, January 1, 2003
The head of Prime Minister Ariel Sharon's bureau, attorney Dov Weisglass, met yesterday with the most senior Likud member of the Central Elections Committee, Knesset member Michael Eitan, in an attempt to persuade him to back a move to have Defense Minister Shaul Mofaz reinstated on the Likud list of candidates for the January 28 elections.

AG: Probe complaint against Mitzna quickly
Ha'aretz, January 1, 2003
Attorney General Elyakim Rubinstein yesterday instructed Major General Moshe Mizrahi, chief of the police investigations unit, to examine a complaint filed by a Likud activist from Haifa against Labor Party Chairman Amram Mitzna as soon as possible.

Soldiers raid Palestinian town near Hebron
Jerusalem Post, January 1, 2003 
IDF soldiers backed by tanks and helicopters launched a raid this afternoon in the village of Dura, near the West Bank city of Hebron, Army Radio reports.

Israeli Army Razes Homes of Palestinian Militants
New York Times, January 1, 2003
JERUSALEM (Reuters) - Israeli forces demolished the homes of two Palestinian militants and found weapons in the ruins of one of the houses, the army said Wednesday.

Weapons teams discover nothing
The Guardian, January 1, 2003
UN inspection teams in Iraq have found "zilch" so far, but have had little help from intelligence agencies to guide them in their hunt for illicit weapons, one of the inspectors said yesterday.

'No basis' for Iraq war now
BBC, December 31, 2002
The inspectors say they have almost nothing to report -- United Nations Secretary-General Kofi Annan has said that he sees no basis at present for the use of force against Iraq.

Infantry Division Headed to Persian Gulf
The Guardian, January 1, 2003
WASHINGTON (AP) - An infantry division from Georgia has been ordered to the Persian Gulf region as a part of the military's preparations for war with Iraq, military officials said Tuesday.

Blix Accepts To Meet Iraqi Officials Before Submitting Report To UN
Islam Online, January 1, 2002
BAGHDAD, January 1 (IslamOnline & News Agencies) - Chief UN arms inspector Hans Blix accepted Iraq’s invitation to hold talks in Baghdad ahead of a report he is due to present to the UN Security Council on January 27.

Thousands of Iraqi children Protest Against U.S. Aggression
Islam Online, January 1, 2002
BAGHDAD, January 1 (IslamOnline & News Agencies) - Five thousands Iraqi children marked the New Year’s eve in Baghdad on Tuesday, December 31, by protesting against U.S. threats of military attack against their country.

Germany in a muddle over war
The Guardian, January 1, 2003
Cunningly prodded from Washington, Germany's centre-left government is slipping gradually into a ludicrously - and perilously - inconsistent position on Iraq.

U.S. faith delegation arrives in Iraq
World Tribune, December 30, 2002
NEW YORK, Dec. 30 (UPI) -- A delegation of 12 religious leaders has arrived in the Iraqi capital, Baghdad, to promote a better understanding between the followers of the Christian and Islamic faiths, the New York-based National Council of Churches announced Monday.

Bush: Attack by Iraq Would Hurt Economy
The Guardian, January 1, 2003
CRAWFORD, Texas (AP) - President Bush is keeping an unwavering aim on Iraq while insisting North Korea's nuclear ambitions can be held in check diplomatically and without resort to military force.

Bush: Saddam is threat to security of Americans; Blix invited to hold talks in Baghdad
Al-Bawaba, January 1, 2003
US President Goerge W. Bush said Tuesday he had hoped the Iraqi weapons stand-off could still be settled without bloodshed.

Israel, Turkey, U.S. Conduct Exercise
The Guardian, January 1, 2003
HAIFA, Israel (AP) - Israeli, Turkish and U.S. naval vessels conducted a joint exercise off the Israeli coast Wednesday, their fifth annual maneuvers.

U.S. combat division moves to Gulf region; Iraq calls Arabs to follow Korean response towards Bush threats
Al-Bawaba, January 1, 2003
The U.S. military ordered more than 11,000 desert-trained Army troops from the 3rd Infantry Division to start moving to the Gulf in coming days in the kickoff of a major build-up of ground forces for a possible war with Iraq, defense officials said on Wednesday.

Daily News: Ankara, Washington and the Kurds establish joint committee
Arabic News, January 1, 2003
The leader of the Kurdistani National Federation has unveiled that Turkish officials agreed to found a joint committee with the Iraqi Kurds and the USA to coordinate policies in case a Gulf war erupts in the region.

Iraqis Focus Of Nuns’ Fears: War Worries Inspire Campaign
Common Dreams, December 31, 2002  
Sister Margaret Galiardi broke the U.S. ban on traveling to Iraq two years ago and saw the suffering faces of the Iraqi people and dozens of nuns from her order who live and work in the land of Saddam Hussein.

Allied aircraft strike Iraqi radar after it enters southern no-fly zone
Jerusalem Post, January 1, 2003
CAIRO, Egypt - US and British warplanes attacked an Iraqi radar system Wednesday after it entered the southern no-fly zone, the US military said in a statement.

Military court hears how Hamas pursued chemical, biological terror
Ha'aretz, January 1, 2003
Members of Hamas's military wing have been gathering information over the past year with the goal of carrying out attacks using biological and chemical weapons.

Fateh-Hamas dialogue to be renewed next week 
Alternative Information Center, January 1, 2003 
An informed source told al-Ayyam newspaper that by the end of next week, a date will be set up for the second round of dialogue between Fatah and Hamas, predicting that this round will take place next week, adding that the next few days will be devoted to end the talks conducted by Omar Suleiman, Chief of the Egyptian Intelligence, with several representatives of Palestinian factions, including the Palestinian People's Party.

Fahd and Abdullah discuss Mideast, Iraq with Jamali
Arab News, January 1, 2003
RIYADH, 1 January 2003 — Custodian of the two Holy Mosques King Fahd and Crown Prince Abdullah, deputy premier and commander of the National Guard, met Pakistani Prime Minister Mir Zafarullah Khan Jamali and discussed developments in the Mideast and the Iraq crisis, the SPA news agency reported.

Gulf secretary general: Customs federation in force today
Arabic News, January 1, 2003
As from today, the Gulf Cooperation Council (GCC) states will achieve a qualitative step towards a customs union and its related agreement, in implementation of the resolutions of the 23rd summit which was held in Doha on December 20 and 21, 2002 in Doha.

Moussa: the Israeli peace camp has started to move
Arabic News, January 1, 2003
The Egyptian foreign minister Ahmad Maher said yesterday that "the peace camp in Israel has started to move." Maher added in a meeting with journnalists that the "coming phase will be difficult because of the approaching elections phase in Israel," adding that, on the opposite side, there is a positive phenomenon in that the peace camp in Israel has started to move after it used to be silent, a matter which should be encouraged on the ground that peace achieves the interests of all."

Sale Aims to Assist People of Bethlehem
Evening Post, January 1, 2003
A sale has been held in aid of people living in Israelioccupied Bethlehem. A special Christmas event took place at John Wesley Chapel, when the Bristol and Bethlehem friendship group had a sale of Palestinian goods direct from Bethlehem.

US-blacklisted Ramallah investment firm goes into liquidation
MENA Report, January 1, 2003 
The board of the Ramallah-based public investment firm Beit El Mal Holdings has decided to liquidate the company to protect shareholders. Beit El Mal was blacklisted in April 2001 by the US administration, charged with providing financial and material support to the Islamic Resistance Movement, Hamas.

Shalom: I'll bring forward tax reform
Globes, January 1, 2003
Minister of Finance Silvan Shalom officially announced that the income tax reduction process would be shortened from five to three years. From today forward, taxes will be levied on savings and capital gains, in accordance with the tax reform program. For the first time, Israel will collect tax on profits from all forms of investment, from the stock market to shekel-linked instruments.

Shekel becomes freely convertible
Globes, January 1, 2003 
The Bank of Israel today announced that a number of overseas investment regulations would be relaxed. The major change is the deregulation of foreign currency transactions, thereby turning the shekel into a fully convertible currency, as agreed with Prime Minister Ariel Sharon in December 2001, when the interest rate was lowered by 2%.

Investment Increases From Mideast
New York Times, January 1, 2003
SAN ANTONIO, Dec. 26 — An influx of investment capital from both Arab and Israeli investors, in roughly equal proportion, has made the Middle East the second-largest source of foreign investment in United States commercial real estate this year after Europe, where changes in German pension fund laws contributed to a surge in investment in American properties.

Looking for a rented apartment in a refugee camp
By Amira Hass, Ha'aretz, January 1, 2003
Traditional charities are hard at work in the Old City, but provide only "band aids for very serious diseases."

Palestinian Man Returns Lost Israeli Child To His Family
Islam Online, January 1, 2002
AL KHALIL (HEBRON), January 1 (IslamOnline) – "Islamic ethics are the reason", this is the response a Palestinian man gave to the Israeli occupation forces when they asked him why he returned a lost Israeli child to his family.

Jerusalem to lay off 20% of workforce
Jerusalem Post, January 1, 2003
The Jerusalem Municipality plans to lay off nearly 20 percent of its workforce over the next several years as part of cost-cutting measures, Mayor Ehud Olmert said Wednesday.

Thousands of Palestinians rally on anniversary of founding of Arafat's movement
Jerusalem Post, January 1, 2003 
Thousands of Palestinians, many carrying assault rifles and dummy rockets, marched in the West Bank and Gaza Strip on Wednesday, marking the anniversary of the mainstream Fatah movement, in a show of internal strength and defiance against Israeli occupation.

Senior IDF officer: Top Al-Quaida leader recruiting Palestinians
Jerusalem Post, January 1, 2003 
A senior IDF officer in the General Staff said Wednesday that one of the top six Al-Quaida leaders was operating in the region and trying to recruit Palestinians to carry out terror operations, Israel Radio reported.