The outlines of a Palestinian state are emerging in the West Bank. The New York Times says direct talks are another serious chance for peace, and the LA Times says they are better than the alternative. Richard Cohen says both sides must make compromises. PM Fayyad apologizes for the disruption of anti-negotiation activities in the West Bank and says a self-sufficient economy is the next PA goal. Two thirds of Palestinians back negotiations with Israel. The PA issues a new document outlining the second year of state building. Israel is considering “goodwill” gestures to the Palestinians. Fayyad says PM Netanyahu must explain his understanding of a Palestinian “state” and that negotiations are at a make or break moment. The prominent rabbi who wished death on all Palestinians now says he understands the need for extending the settlement freeze. Israelis anticipate US military aid in the event of an agreement. Gershon Baskin looks at lessons from previous negotiations. The Forward looks at the new “Emergency Committee for Israel.” Ghassan Khatib warns that a pragmatic two state solution may become impossible. Yossi Alpher mocks the right wing Israeli version of a “one-state solution."