Limited construction materials enter Gaza. A Gaza man says Hamas tortured him for allegedly having affairs. Palestinian officials say Gaza's banking system is sound in spite of the closure of the Arab Bank branches. Israeli officials vow to keep up settlement activity and demolish Palestinian homes in occupied East Jerusalem, but DM Barak warns against such "provocations" and Ha'aretz calls them "dangerous incitement." The PA accuses Israel of sabotaging peace talks. The US pledges $500 million in aid to the PA. US officials express concern about settler violence. Alan Dershowitz says Salam Fayyad is a real partner for peace. Jewish Jerusalem residents criticize Elie Wiesel's statement on the city. The GAO says Israeli restrictions, Palestinian limitations are hampering the development of new security forces. High school students object to an exam question identifying Edward Said as a Palestinian. The National highlights the difficulties of Palestinian life in Jerusalem. Elias Harfoush is not optimistic about new negotiations. George Hishmeh says Israel should be accountable to the US. Sasha Polakow-Suransky says Jewish critics of Judge Goldstone are ignoring the history of Israeli-South African relations.