Fallout from the al-Mabhouh assassination continues to dominate coverage: reports increasingly focus on the botched nature of the operation; Hamas retracts accusations against the PA; criticism in the Israeli press extends to cartoonists; Israeli officials say they expect a manageable backlash; the AP reviews the history of Mossad assassinations and Ha'aretz profiles its Kidon unit; the BBC asks why al-Mabhouh went to Dubai and The Independent interviews his brother; Israel's UK embassy issues a provocative tweet apparently boasting about the murder. Palestinian officials say their state and institution building plans extend into Area C and US officials suggest the Quartet will support this. Ha'aretz says Palestinians have agreed to begin proximity talks next week. A YNet commentary asks why Israel is so opposed to Palestinian nonviolence. PM Fayyad tells US Jewish leaders Israeli incursions undermine the PA. A new survey in the occupied territories shows Hamas would lose new elections and Fatah enjoys a 33% advantage in popularity.