The New York Times profiles friendships between wounded Israeli and Palestinian children. A commentary in the LA Times says Palestinians and Israelis will keep killing each other in the coming year, although Israeli security forces say 2009 was a "quiet year." Israel's Deputy Foreign Minister denies there is an occupation in the occupied territories, and his government is defending 15 previously "unauthorized" settlement buildings. Hamas reportedly rejects Israel's latest prisoner swap offer. The Palestinian Bureau of Statistics says there are 10.88 million Palestinians, half of them in the diaspora. A commentary in Ha'aretz questions the Israeli government's interest in peace. Special Envoy Mitchell reportedly will propose a new formula to restart permanent status negotiations. A Jerusalem Post commentary asks how Israelis would react if they were treated like Gazans, The BBC profiles a child born during the Gaza war, and IPS offers another retrospective of the conflict. American high school students are being indoctrinated with settler ideology. The Gaza war has left Palestinian citizens of Israel disillusioned. Gaza is reportedly being slowly rebuilt. The National says that Israel should not be allowed to dictate the terms for peace. Daoud Kuttab says Pres. Obama has taken his eye off the diplomatic ball. The Jordan Times calls for international sanctions against Israel.