Israeli army Chief of Staff Lieutenant-General Dan Halutz says the military can defeat Palestinian terrorism. In a “Jerusalem Post” interview, Halutz rejected a popular argument that the only way to reduce terror is to reach a peace agreement with the Palestinians. He said Israel has dealt a major blow to terror and will continue to do so. Halutz also said the threat of all-out war with the Arab nations is the lowest it has been since Israel became a state in 1948.