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Source: http://www.haaretz.com/hasen/spages/418893.html
Despite Everything, An Improvement
(Ha'aretz) Ze'ev Schiff - Despite the unceasing terrorist war, there has been an improvement in Israel's strategic position over the past year. That is also the assessment in the Israeli intelligence community. The American military presence in Iraq puts the Americans on the flanks of two countries that Israel considers extremist: Iran and Syria. Prior to that came the toppling of Saddam Hussein's regime. However, Egypt continues to improve its military, thanks to U.S. help, and its navy is ahead of Israel. A year ago, the assessment was that Iran would be near nuclear independence in 2004, but that timetable seems to have been postponed. Yet Iran's Shihab-3 rockets have become operational, which means Iran can now reach Israel.