Rabbi Kenneth Chasen says a Palestinian state is emerging in the West Bank. FM Lieberman says the settlement freeze should not be extended and a peace agreement is unlikely. Hamas leaders call negotiations “illegal” and say they will “eliminate” the Palestinian cause. An Israeli court convicts a leader of Palestinian nonviolent protests of “incitement.” Reuters says the question of Gaza will be missing during the talks. Protesters challenge a no-go area in Gaza. US negotiators visit the region and say they expect an agreement within a year. Aluf Benn says this is possible. Akiva Eldar says US pullout from Iraq increases its interests in an agreement. Right-wingers in Likud meet to promote settlement expansion. Bassem Eid accuses the PA of practicing discrimination. Israeli courts allow Palestinians married to Israeli citizens to stay in the country. The younger generation of Palestinian refugees is less interested in return. Carlo Strenger says if talks fail, Palestinians should unilaterally declare independence. The JTA looks at Jewish American responses to the negotiations, including the joint ATFP-JCPA statement. Mamoun Fandy says the US wouldn't be convening the talks if it wasn't 70% sure of success.