NEWS: DM Barak says if negotiations with Palestinians fail, Israel will have to consider unilateral acts in the occupied West Bank and calls for more international action against Pres. Assad. An elaborate tunnel system and economy is the heart of life in Gaza. Israeli offshore natural gas discoveries offer potential windfalls but pose a challenge to its small navy. PM Netanyahu urges Palestinians to return to negotiations. Gaza journalist Asma al-Ghoul wins an international award for courage. Israel will return the bodies of 91 Palestinians buried in an Israeli cemetery. The PA is seeking UN recognition of a threatened West Bank village as a world heritage site. An Israeli MK says human rights activists should be put in prison camps. Israeli judges approve an extremely unusual plea bargain in the case of a Jewish terrorist found responsible for murdering Palestinians. Israeli prosecutors decide not to indict two rabbis who authored a book that provides religious justification for the killing of non-Jews. Palestinians say there has been a sharp increase in home demolitions by Israeli occupation authorities. COMMENTARY: Shlomo Ben-Ami, Thomas Schelling, Jerome Segal and Javier Solana call for the creation of a new UN Special Committee on Palestine. Zvi Bar'el says Iran is signaling a new willingness to engage in the West on its nuclear program. Aeyal Gross says security protection must apply to the Palestinians as well as Israelis. Controversy surrounds an Israeli production of the Merchant of Venice being staged at an international Shakespeare Festival in London. Nathan Guttman says Israeli politicians are increasingly looking for support from American donors. Ilan Baruch says nonviolent protests make sense for Palestinians, but they have to be careful about the counterproductive impact of sweeping boycotts. Rubik Rosenthal says Israel is still fundamentally a European country. Zvika Krieger says some right-wing Israelis think the “Arab Spring” is good for Israel.