NEWS: An Israeli government committee report claims Israel is not the occupying power in the occupied Palestinian territories and recommends sweeping expansions of Israeli territorial claims and authority. Pres. Abbas says the PA will exhume the body of the late Pres. Arafat and invite Swiss experts to take samples for testing. PM Fayyad urges Arab states to fulfill their pledges to the PA. An Israeli court sentences two police officers to 30 months in prison over the death of an injured Palestinian detainee they abandoned. In a meeting with Abbas, Sec. Clinton reiterates the importance of the Palestinian issue. Abbas accuses Hamas of obstructing national unity. Palestinian officials say Abbas turned down an offer from PM Netanyahu to release some prisoners in preparation for resumed negotiations. PA anti-correction officials say more indictments are in the works. The PA says Abbas' upcoming visit to Iran for a conference is “not friendly” and urges Iran "to stop calling to wipe Israel off the map and start calling to add Palestine to the map.” An opinion presented to European governments uphold the legality of boycotts against settlement activity. An Israeli prosecutor reportedly tells British jurists that every Palestinian child “is a potential terrorist.” COMMENTARY: Jeff Barak says Netanyahu has to choose between statesmanship and political survival. Nasser Laham says Abbas needs to decide whether to "fight or negotiate." Ben Lynfield says because of the occupation, East Jerusalem is in an economic tailspin. David Ignatius says the Arab uprisings have left Israel with impossible quandaries. Uri Avnery explains why he thinks Israel, in fact, poisoned Arafat. A new book claims that Israel, not the MEK, was responsible for assassinating Iranian scientists. Emanuel Stoakes says the Israeli-Palestinian conflict must end for the sake of children. Jeffrey Goldberg says the new Israeli Levy Committee report shows the Israeli right wants Palestinian land, but not the Palestinian people on it.