PM Netanyahu finds himself on the defensive, and is facing challenges from FM Lieberman. FM Al-Maliki says Lieberman is playing catch-up with Palestinian diplomacy. Israel arrests staff from the British consulate. Pres. Abbas says he is 'always ready' for talks after a settlement freeze resumes. US peace efforts revive after the holiday break. Labor MKs says they may leave the cabinet if there is no progress on peace. Israel arrests three Palestinian fishermen off the coast of Gaza. Abbas' brother passes away in Syria. Ha'aretz says Israel must let Palestinians peacefully protest. Mohammed Dahlan denies a plot to overthrow Abbas. DM Barak says Israel should focus on the Palestinian track. An Asian aid convoy reaches Gaza. Palestinians are pursuing their own Plan B for peace. Hassan Barari says the US must change its approach. Joschka Fischer says its time for final status talks. Ziad Asali and Hussein Ibish say Arabs and Arab Americans must take responsibility for combating extremism.