Mideast Report

Carlos Yerushalmi, 52, of Haifa, died from injuries he received in Sunday's Haifa restaurant bombing, bringing to 15 the number of dead in that terror attack.

Israeli policeman dies of his wounds JERUSALEM (JTA) — An Israeli policeman who blocked a suicide bombing Monday died of his wounds.

The policeman stopped a suspicious car at a downtown Jerusalem roadblock. The car exploded, injuring the policeman and two pedestrians.

The policeman died on his way to the hospital. Police suspected the bomber planned to drive the car to a nearby strip of cafes and restaurants.

Israel: Arafat printing counterfeit money JERUSALEM (JTA) — Israeli troops found stashes of counterfeit shekels and dollars, as well as plates to print money, in Yasser Arafat's Ramallah headquarters, according to Israeli officials.

Justice Minister Meir Sheetrit said the Palestinian Authority president is responsible for printing several million dollars and shekels in fake money, which could have been used to undermine Israel's already shaky economy.

Other officials said the money could have been used to pay Palestinian terrorists operating in Israel.

Hezbollah gunmen fire from Lebanon JERUSALEM (JTA) — Israel's defense minister warned of retaliation after Hezbollah gunmen fired from Lebanon at an Israeli army outpost on the border early Monday.

"We have great interest in a quiet border between us and the Lebanese," Benjamin Ben-Eliezer told Israel Radio. "But let there be no misunderstanding. I hope that we will not need to prove to Hezbollah the strength of the Israeli Defense Force.