After 35 years in office, the Saudi foreign minister says his biggest regret is the lack of an Israeli-Palestinian peace agreement. In the LA Times, an international law expert affirms that settlements in occupied territories are illegal, and a separate report highlights the rise of religious extremism in Israel. The Christian Science Monitor analyzes the PLO's move to extend Pres. Abbas' term pending new elections. In a Herald Tribune commentary, Mustafa Barghouti warns that time is running out for a two-state solution. The AP profiles a Palestinian village in the occupied West Bank surrounded by settlements. Several reports examine the tragic consequences of last year's war in Gaza. Ha'aretz provides details of former PM Olmert's peace proposal, which reportedly involved Israel annexing 6.3% of the West Bank and much of East Jerusalem. Hamas reaffirms its intention to "liberate all of Palestine," and is reportedly inclined to accept Israel's current offer on a prisoner exchange. Egypt chides the organization for "foot dragging" on Palestinian reconciliation. JJ Goldberg critiques four common opinions about Israel and the occupation, and Michael Young says for all its imperfections, the Oslo framework offers the only chance of peace. In a highly unusual move, the pan-Arab daily Asharq Al- Awsat runs an "open letter to the Arab world" from Israel's Deputy Minister of Foreign Affairs, Danny Ayalon.