ATFP President Ziad Asali is interviewed by The Media Line (1). The Obama administration promises that U.S. military aid to Israel will not be lessened because of the financial crisis (2). A Gaza family that lost 29 relatives in January's war drops their lawsuit against Israeli government officials (3). The Washington Post profiles the southern Israeli town of Sderot, near the Gaza border (4). Palestinian unity government talks are underway in Egypt (7) (13), while an editorial in the Arab News urges both sides to withhold public skepticism about success (8). Time Magazine examines the resignation of Palestinian Prime Minister Salam Fayyad (10).