The Washington Post looks at Israel's ties to Pacific islands. Israel claims the senior Hamas official murdered in Dubai was a key figure in arms smuggling, but an Israeli minister denies any responsibility. Pres. Abbas says he is not looking for US guarantees, calls for a three month settlement freeze and warns Israel is creating a single state. The governor of Hebron warns against increased settlement activity. Israel denies reports it disciplined officers over white phosphorus use in Gaza. Palestinians launch their first private equity fund. A Ha'aretz commentary says the Israeli left must wake up before it's too late. The Israeli army seizes a hilltop in the occupied West Bank. An EU official says proximity talks will begin soon. A Guardian commentary says Israel's opposition to Palestinian state building is leading to a new intifada. The Independent says Palestine is slowly dying in the West Bank, and Lord Phillips of Sudbury calls for sanctions to save Israel from itself. A Gulf News commentary says Israeli leaders must evolve, and the Arab News defends the Goldstone report.