Two Palestinian citizens of Israel are arrested on charges of spying for Hezbollah, hundreds protest. The UN development says there is a lack of human security in the occupied territories. A fire at an Israeli warehouse causes heavy losses to Gaza merchants. Israeli settlers increase attacks on Palestinian mosques. Bradley Burston suggests Israel is starting to resemble a police state. Israel says it will demolish 46 settler structures for violating the partial moratorium. Gideon Levy describes Israel's campaign against pro-Palestinian foreign visitors. An Israeli NGO seeks to keep a West Bank highway closed to Palestinians. DM Barak says the occupation is eroding Israel's global status. Gershon Baskin urges optimism on proximity talks. Daoud Kuttab says peace must be pursued by all means. Uri Avnery says John Mearsheimer is wrong to think peace is impossible. Ghassan Khatib says settlements remain the make or break issue. Yossi Alpher says PM Netanyahu wants direct negotiations. Mkhaimar Abusada says any failure will produce a period of volatility in Palestinian politics. Sasha Polakow-Suransky summarizes Israel's deep relationship with apartheid South Africa in light of accusations against Judge Goldstone.