[Dr. Aaron Lerner - IMRA: Following the Israeli tradition that only
successful attacks count (when many tens of thousands of Israelis were
almost incinerated when a tanker truck blew up in Israel's largest gas (and
other fuel) depot, the Pi Glilot fuel depot on Thursday May 23, 2002, it had
literally no impact on Israeli decision makers) it can be expected that no
significant action will be taken until the Palestinians actually succeed in
killing hundreds in an attack/]

'Hamas planning mega-terror attack in Israel'
Deputy Shin Bet chief tells cabinet organization instructed by headquarters
abroad to carry out mass casualty attack ; says arms smuggling, shootings
and rocket attacks have increased
Ronny Sofer YNET Published: 08.26.07, 18:05 / Israel News
www.ynetnews.com/articles/0,7340,L-3442132,00.html

Hamas may carry out a mega-terror attack, the Deputy Shin Bet Chief, known
only as Y, told cabinet members Sunday. "There were clear orders from the
Hamas headquarters abroad to Hamas in Israel to carry out a mass casualty
attack in Israel," he said.

According to Y, the Hamas leadership in Gaza is experiencing "deep strategic
complications." They are having trouble running the government, gaining
legitimacy, controlling internal checkpoints and, in general, positively
impacting daily life.

This situation increases the likelihood that the organization's policy
regarding terror attacks with change, in Gaza, the West Bank and possibly
even outside of Israel, he said.

Arms smuggling has not only continued, it has increased, Y reported. In the
few months since Hamas' took over Gaza in June of this year, 40 tons of
weapons have been smuggled into the Strip - approximately one half of the
total amount of armaments smuggled into the area since Israel's July 2005
disengagement.

Since August, the defense establishment recorded five major incidents of
arms smuggling through Egypt, during which 13 tons of explosives and 150 RPG
(rocket-propelled grenade) carriers were brought in. Simultaneously, there
has been an observable decrease in Egypt's measures to combat the trend.

Not surprisingly, the deputy chief stated that armed attacks against Israeli
communities and forces had increase. There were 20 Qassam attacks last
week, a high number relative to the average of 70 rockets per month.

The number of shooting attacks from Gaza (gun or mortar fire towards the
border fence or into Israel) also increased in the past week - up to 56, in
comparison to 43 attacks the week before. The heightened mortar fire,
specifically, was a response to the IDF's operations within Gaza, Y
explained.

The atmosphere in Gaza indicates that the local population blames Hamas for
the current financial crisis there, he said. In contrast to the situation in
the Strip, the situation of the West Bank's private sector has improved,
highlighting the economic separation between businessmen in the two areas.

Nonetheless, the Hamas leadership does not appear to be facing any
significant internal threat from Gaza.