Reuters reports on the continuing complications that Israeli settlement activity is posing to Israeli-Palestinian negotiations (2.) The Washington Report on Middle East Affairs spotlights the ATFP second annual gala and the remarks of keynote speaker Undersecretary Nicholas Burns on Palestinian statehood (4.) The Jewish Telegraphic Agency examines the possibility of a prisoner exchange and ceasefire deal between Israel and Hamas (7.) Inter Press Service looks at the uniquely challenging conditions facing Lebanon's undocumented Palestinian refugees (8.) The Independent (UK) reports on a good Christmas tourism season for Bethlehem (9.) A Gulf News (UAE) editorial is critical of Israel's new settlement expansion plans (12.) In Haaretz (Israel) Akiva Eldar examines efforts to resolve the Palestinian prisoner issue (13.) Also in Haaretz is an analysis of how the controversy over the Israeli settlement issue may not be settled until the visit to the region of President Bush in January 2008 (15.)

The American Prospect examines how funds raised in the U.S. by groups like the Hebron Fund go beyond their ostensible support for Israel and perpetuate the oppressive reality of life for Palestinians in Hebron (1.) A Boston Globe editorial comes out in favor of an ceasefire between Israel and Hamas as a way to end rocket fire against Israel, and possibly being the transformation of Hamas into a political participant in the two-state solution process (3.) The Forward reports on growing U.N. concerns with the deteriorating humanitarian situation in Gaza (4.) An International Herald Tribune opinion by Eric Alterman uses the figures of the latest survey of American Jewry to point out the paradox between the values of the American Jewish mainstream and the right-wing in the community that frequently speaks for them (7.) The Economist (UK) examines the prospects of success for President Bush's upcoming tour of Middle East countries (10.) A Gulf News (UAE) opinion by former Pakistan foreign secretary Tanvir Khan analyzes the continuing uncertainty regarding Israeli-Palestinian peacemaking in spite of the positive results of the Annapolis meeting and Paris donor conference (13.) A Haaretz (Israel) opinion by Daniel Gavron urges Israel to remove unmanned roadblocks of no security function in the occupied West Bank (14.) Also in Haaretz, an opinion by U.S. ambassador to Israel Richard Jones details how peace education is critical to supporting and reinforcing Israeli-Palestinian political negotiations (16.)

The Associated Press reports on Israeli reaction to the call by Hamas for a ceasefire with Israel (2.) The Washington Post examines the policies of separation and exclusion that Israel's non-Jewish Arab citizens face in a number of different areas (3.) In Foreign Policy In Focus, professor of politics at San Francisco university Stephen Zunes offers a mixed review of the two main arguments put forth by Professors Walt and Mearsheimer in their recently released book on the Israel lobby in the United States (4.) The BBC (UK) analyzes how much difference aid to the Palestinians can make to their daily lives (7.) The Reut Institute (Israel) publishes a post-Annapolis paper whose main contention is that the key to empowering the Palestinian Authority politically lies with Israel rather than with the international donor community (8.) Haaretz (Israel) reports on an Israeli government evaluation that extreme right-wingers in Israel will use violence to counter any illegal outpost or settlement evacuation from the occupied Palestinian territories (9.) Also in Haaretz, Amira Haas details the political jockeying behind the current Palestinian census, suspended in Gaza by Hamas (11.) An Amin (Palestine) opinion by member of the Palestinian National Council Bernard Sabella uses the occasion of the holidays to write an open letter to Israelis (13.)

A New York Times editorial emphasizes the importance of matching financial assistance to the Palestinians with diplomatic progress in negotiations towards a final peace settlement (2.) Reuters reports on an Israeli housing ministry preliminary proposal on further settlement expansion in the Qalandia area of the occupied West Bank (4.) Americans For Peace Now present their weekly translated excerpts from the Israeli press (6.) A Toronto Star (Canada) editorial (8) and a Miftah (Palestine) opinion by Caelum Moffatt (13) join the chorus of newspapers urging Israeli easing of Palestinian movement restrictions to take advantage of funds pledged at the Paris donor conference (8.) The Australian (Australia) interviews Israeli Labor party minister Isaac Herzog on the parameters of an Israeli-Palestinian peace agreement and the obstacles to achieving it (11.) Palestine Center for Policy and Survey Research presents its latest poll of the Palestinian people revealing a stabilization of support for Hamas due to a lack of public confidence in the Annapolis meeting (14.) A Haaretz (Israel) opinion by Nehemiah Shtrasler takes the Israeli media to task for a 'double standard' in reporting on the issue of Gaza and militant rocket fire out of it directed against Israel (15.) A Jerusalem Post (Israel) opinion by Michael Felsen urges American Jews, Israelis and Palestinians to acknowledge mistakes in their dealings with each other (17.)

Reuters reports on how Israel's interpretation of a freeze in settlements is being translated on the ground (1.) BBC (UK) examines the steps being taken to ensure that the $7.4 billion pledged by the international community as aid to the Palestinians reaches those most in need (5.) A Times (UK) opinion by chief foreign commentator Bronwen Maddox acknowledges the importance of the Paris donor conference while stressing that realization of its benefits hinges on Israel's relaxing of its restrictions on Palestinian freedom of movement (7.) The A Daily Star (Lebanon) editorial stresses the critical role of the United States in Israeli-Palestinian peacemaking in the wake of the Paris donor conference (9.) In a BitterLemons (Israel/Palestine) interview, Palestinian legislator Hanan Ashrawi ties the Israeli demand to be recognized as a Jewish state prior to negotiations to the 'demographic' issue (11.) A Haaretz (Israel) editorial urges the Israeli government to remove all roadblocks in the occupied West Bank that are hindering the Palestinian economy, in accordance with the World Bank report on the issue (12.)

The Washington Post reports from Gaza on the increasing humanitarian toll borne by its civilian residents due to the blockade of the territory (1.) Salon sheds light on the new coalition of the religious right-wing aiming to prevent any return of sharing of Jerusalem with the Palestinians as part of a future peace settlement (3.) The Independent (UK) looks at Saudi reluctance to commit budgetary support to the Abbas/Fayyad government (5.) The Telegraph (UK) reports on statements by Palestinian president Abbas at the Paris donor conference warning of the consequences of insufficient financial support for the Palestinians (7.) An Arab News (Saudi Arabia) opinion by Jonathan Power examines Israel's excessive reliance on military power in the face of an Arab world not posing such a threat (8.) In Miftah, Caelum Moffatt analyzes the challenges facing both the two and one state solutions to the Israeli-Palestinian conflict (10.) A Haaretz (Israel) editorial sees the establishment of a Palestinian unity government as the only way to end militant rocket fire into Israel from Gaza (11.) Also in Haaretz is an examination of how the issue of removal of Israeli roadblocks in the occupied West Bank will feature prominently in today's Paris donor conference (13.)

A Washington Times opinion by ATFP president Dr. Ziad Asali elaborates on why developing a strong and effective Palestinian security service is in Palestinian, American and Israeli interests (1.) Reuters reports on a Red Cross statement critical of the effect of Israeli restrictions on Palestinians across the West Bank and Gaza (3.) In a Salon opinion, Greg Greenwald analyzes the results of an American Jewish Committee poll of American Jewish opinion and finds that rightwing opinions are held by few in the community (4), while in Inter Press Service, Jim Lobe looks at the same survey to find declining support for the establishment of a Palestinian state (8.) The Forward reviews the new book on former U.S. ambassador Kurtzer and USIP scholar Lasensky that takes a historical look at shortcomings in Israeli-Palestinian peacemaking by successive U.S. administrations (6.) The Independent (UK) looks at the less than auspicious start to Israeli-Palestinian peace talks (10.) An Arab News (Saudi Arabia) opinion by Uri Avnery analyzes Israel's reaction to the recent National Intelligence Estimate report on Iran's nuclear weaponization program (12.) Haaretz (Israel) looks at a World Bank report warning that even if all donors fulfill their pledges to the Palestinians, the Palestinian economy will not improve without a relaxing of Israeli movement restrictions in the West Bank (14.) Also in Haaretz, an opinion by former Israeli FM director general Shlomo Avineri takes a historical look at the reasons for the success or failure of American foreign policy in the Mideast (15.)

The Christian Science Monitor examines how back-channels may play a key role in upcoming Israeli-Palestinian negotiations (2.) The Jewish Telegraphic Agency looks at how some Israeli setters are attempting to build further settlement outposts in the occupied Palestinian territories in order to subvert peace negotiations (3.) A Philadelphia Inquirer opinion by Eric Trager urges the inclusion of a second Arab party to the Israeli-Palestinian negotiations to help each side overcome their respective weaknesses (5.) The Toronto Star (Canada) reports on the unpredictability and arduousness of commuting for Palestinians in the occupied West Bank because of Israeli restrictions (7.) The Telegraph (UK) examines how planned Israeli construction in the Har Homa settlement threatens upcoming Mideast peace talks (9.) A Jordan Times (Jordan) opinion by Gwynne Dyer fleshes out Israeli PM Olmert's statements on the choices available to Israel being either a Palestinian state or an apartheid-like situation (11.) In Haaretz (Israel) Bradley Burston urges a new Israeli policy to encourage the elements within the Hamas movement moving towards accommodation with Israel (12.) Also in Haaretz, an editorial is critical of the Har Homa settlement expansion and warns of its many damaging ramifications (14.)

A New York Times editorial urges Israelis and Palestinians to begin the work necessary to break out of old patterns detrimental to peace negotiations (2.) In Israel Policy Forum, MJ Rosenberg takes heart in growing indications that the more conservative American Jewish institutions are adopting the two-state solution paradigm (4.) A Jewish Telegraphic Agency opinion by AMEINU president Kenneth Bob calls on U.S. Jews to support Israeli government decisions on the future of Jerusalem (6.) The New Statesman (UK) reports on the critical shortages affecting Gaza and its civilian population (7.) The Australian (Australia) reports on an open letter from Hamas to Secretary of State Rice asking that the sanctions against Gaza be lifted (8.) In Haaretz (Israel) Amira Haas reports on how the takeover of three institutions in Gaza by Hamas has deepened the Gaza-West Bank split (9.) Also in Haaretz are the results of a survey of the Israeli public post-Annapolis (10.) A Jordan Times (Jordan) editorial is critical of the reported Israeli offer of a provisional Palestinian state made at Annapolis (13.)

The Associated Press reports on comments by Israeli vice-PM Ramon that shed light on the Israeli government position on jerusalem in the lead up to negotiations (2.) Americans For Peace Now presents its weekly translations of excerpts from the Israeli press (4.) In the New Republic, contributing editor Yossi Halevi interviews figures in the Israeli defense establishment to reveal a major disconnect between the U.S. and Israel over the National Intelligence Estimate on Iranian nuclear weaponization (5.) The Guardian (UK) examines the continuing repercussions of the NIE report on Israeli politicians and the media (7.) The Sunday Herald (UK) looks at how the blockade of Gaza has impacted the strip's health-care system (9.) A Daily Star (Lebanon) opinion by Rami Khpuri sees the announced expansion of the Har Homa settlement in occupied East Jerusalem as a test for both the U.S. and the Palestinian leadership (10.) A Haaretz (Israel) opinion by Akiva Eldar views the Har Homa issue as a test for Annapolis, drawing lessons from the first crisis related to that settlement in 1997 (12.)