NEWS: Hamas refuses to prove that a captured Israeli soldier is still alive. PM Netanyahu has said Israel will retaliate with harsher conditions for Palestinian prisoners. Palestinians say Turkey has pledged to help their UN bid. PM Netanyahu reportedly tells US officials he accepts that negotiations should be based on the 1967 borders. Palestinians also say they’re willing to soften their positions to facilitate talks. The PA fines a truck driver for distributing settlement goods. Netanyahu’s son reportedly posts disparaging remarks about Arabs on Facebook. PM Fayyad participates in a protest against the separation barrier. The EU casts doubt on Palestinian chances that the UN in September. COMMENTARY: Yoel Marcus says Israelis and Palestinians are avoiding painful compromises like children avoiding the dentist. Jeremy Ben-Ami says Israel should welcome criticism from its friends. Yehuda Ben Meir joins calls for Netanyahu to change his coalition. Al-Hayat interviews Zbigniew Brzezinski. Marwan Al Kabalan says Arabs are starting to doubt Pres. Obama’s ability to broker peace. Ha’aretz interviews EU foreign policy chief Catherine Ashton. Rana Baker says Israeli restrictions make Palestinians tourists in their own homes. Saleh Al-Naami says settlers continue to deploy violence against Palestinians with impunity. Mohsen Saleh says recent border incidents have put the right of return back on the agenda.