The Associated Press reports on comments by Israeli vice-PM Ramon that shed light on the Israeli government position on jerusalem in the lead up to negotiations (2.) Americans For Peace Now presents its weekly translations of excerpts from the Israeli press (4.) In the New Republic, contributing editor Yossi Halevi interviews figures in the Israeli defense establishment to reveal a major disconnect between the U.S. and Israel over the National Intelligence Estimate on Iranian nuclear weaponization (5.) The Guardian (UK) examines the continuing repercussions of the NIE report on Israeli politicians and the media (7.) The Sunday Herald (UK) looks at how the blockade of Gaza has impacted the strip's health-care system (9.) A Daily Star (Lebanon) opinion by Rami Khpuri sees the announced expansion of the Har Homa settlement in occupied East Jerusalem as a test for both the U.S. and the Palestinian leadership (10.) A Haaretz (Israel) opinion by Akiva Eldar views the Har Homa issue as a test for Annapolis, drawing lessons from the first crisis related to that settlement in 1997 (12.)