The Washington Post profiles the first planned Palestinian city in the West Bank. The PLO Central Committee is scheduled to meet next month and is expected to approve the continuation of Pres. Abbas and PM Fayyad in office. Exchanges of fire between Hamas and Israel threaten the continuation of the de facto truce. An Israeli expert predicts that at least 130 countries would recognize a unilaterally declared Palestinian state, and Fayyad reiterates he will not accept a "fragmented" state. Right wing Israeli MKs plan to commemorate the death of extremist Rabbi Meir Kahane. Pres. Peres says Netanyahu can and must make an agreement with the Palestinians. Sever Plocker says that Israelis seem completely unaware of the crisis of international legitimacy they are suffering. The Jerusalem Post says the PA State building plan would be unstoppable. There is widespread speculation about a prisoner exchange between Israel and Hamas, but Tariq Alhomayed says Hamas has absolutely no ideas about how to govern. Hussein Agha and Robert Malley critique all existing proposals for dealing with the Israeli-Palestinian conflict in the New York Review of Books.