The Fourth Herzliya Conference on the Balance of Israel's National Security was held during the week before Hanukkah, 2003. The conference deliberations were a reflection of Israel's national agenda, and dealt with a variety of defense, security, political, economic, and social issues. Terror and violence continue to reign in both the Iraqi and the Palestinian-Israeli realms. The economic situation has created a forbidding inevitability forcing prioritization between the requirements of defense and those of the social and education sectors, which rank high in any national security balance. The impasse in the peace process, continuing Arab-Palestinian enmity towards Israel, nourished by mounting antiSemitic hatred, necessitates complex maneuvering and choices between different options, unilateral or other, whilst the battle and struggle continue. Developments in the international arena and threatening processes in the region, such as the ominous prospect of a nuclear Iran, call for a long-term and sober assessment, which should yield short-term policy actions. This Conference’s deliberations, along with the task force reports specially prepared for the Conference, will suggest new ideas and proposals, which hopefully will be put to the Israel decision-makers.