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The LA Times says that Israel is building a barrier along its border with Egypt. Several sources look back at the Gaza war one year on, as Hamas says it's ready for another conflict. Reports suggest that Hamas may be flexible on the deportation of released prisoners, and Ha'aretz says that it is likely to accept Israel's latest offer. Israeli cabinet minister Binyamin Ben-Eliezer says that jailed Fatah leader Marwan Barghouti should be released, but not in the context of a deal with Hamas. A leadership battle threatens to split Israel's Kadima party. A UN official accuses the international community of the "tragic" failure in Gaza. A YNet commentary says that settlers are on a collision course with mainstream Israeli society. More young Israelis pledge to disobey orders to evacuate settlements. West Bank shepherds say their livelihood is threatened by drought and occupation. The Guardian reports on Christmas in Bethlehem under the shadow of the separation barrier, as Palestinian Christians from Gaza pray for peace. Neve Gordon says Israel is determined to break nonviolent Palestinian resistance in the occupied West Bank.
Israel and the Vatican fail to resolve an ongoing dispute over a site in occupied East Jerusalem at which the "Last Supper" is reputed to have taken place. The LA Times says Israel's partial settlement freeze is not perfect but could form the basis for progress on peace. Reports differ over what is delaying an Israel-Hamas prisoner exchange, including a dispute over key prisoners, the possibility of deportation of some, and a bitter dispute between Israeli civilian and military leaders. The Christian Science Monitor says in any event an agreement will not end the siege of Gaza. Jerusalem's Latin patriarch denounces the occupation. Palestinians west of the separation barrier report ongoing settlement construction. Israeli prosecutors indict the leader of nonviolent resistance to the barrier for incitement, and a commentary in Ha'aretz says Israel is waging a war of attrition against nonviolent resistance to the occupation. A Cambridge University choir is split over a possible boycott of Israel. Palestinians say Israel is cutting Bethlehem off to tourists. Asharq Al-Awsat conducts a lengthy interview with Pres. Abbas.
In an interview with the Wall Street Journal, Pres. Abbas says as long as he is in office there will be no third intifada. The PA says it will investigate allegations that Israel harvested organs from Palestinians without consent in the late 80s and 90s. Negotiations continue on a possible prisoner swap between Hamas and Israel, which is reportedly considering deporting some "heavy prisoners." A new Israeli school curriculum about pre-state Jewish terrorist groups draws controversy. Israel bans the head of the "Islamic movement" organization from Jerusalem. International aid groups say the world has abandoned the people of Gaza, and a Jerusalem Post commentary says Israel's policies are radicalizing the population. A senior Palestinian official accuses PM Netanyahu of wasting time on peace.The Guardian runs commentaries calling for dismantling the separation barrier, ending the siege of Gaza and investigating reported complicity of Israeli doctors in torture. Former Pres. Carter apologizes to the Jewish community. Palestinian smugglers scoff at a new Egyptian underground barrier on the Gaza border. Aaron Miller says Pres. Obama needs to have foreign policy goals that are achievable, and Yossi Alpher says that it is in Israel's interest for Palestinians to develop a better grasp of Washington politics. Former AIPAC staff member Steven Rosen says that PM Netanyahu and Special Envoy Mitchell have agreed on Terms of Reference for peace negotiations that include the future status of Jerusalem among other issues.
An underground barrier being constructed by Egypt along the border with Gaza comes under heavy criticism. A prisoner swap between Israel and Hamas continues to be negotiated. An American-style college program has opened for Palestinians in the occupied West Bank. Extremist rabbis from government-affiliated religious institutions continue to urge Israeli soldiers to disobey orders. Israel has jailed the leader of the nonviolent Stop The Wall campaign. Pres. Abbas says he's not optimistic about peace. A commentary in Ha'aretz says the Israeli peace camp needs to focus on a return to the 1967 borders, and another in YNet says that Israel is squandering an opportunity to make peace with the best Palestinian partners it has ever had. A Labor MK and former cabinet minister calls for a new American peace initiative to replace the Roadmap. Former Pres. Carter calls for the rebuilding of Gaza. A former Bush speechwriter says politicians from the religious right like Palin and Huckabee will find their encouragement of settlements has consequences. Leonard Fein expresses doubts about PM Netanyahu's intentions on peace. A new Palestinian opinion poll shows Pres. Abbas would beat Hamas leader Hanniyeh by 16 points in a new election. IPS reports that Europe's ties with Israel remained close in spite of recent tensions.
Israeli police seek to detain the organizers of a Palestinian cultural event in occupied East Jerusalem, and Pres. Abbas warns that Israel is seeking to expel Palestinians from the city. A UN official warns that there is a race against time on Middle East peace and confirms that the settlement moratorium fall short of what is required from Israel. Israeli troops claim they were fired on near Hebron in the occupied West Bank, and Egyptians claim to have been fired on from Gaza. Israeli FM Lieberman vows Israel will resume settlement building "in full force" after 10 months. A Ha'aretz editorial says Israel should pick up where PM Olmert left off on peace. Reports suggest Israel will give its latest response on a prisoner exchange with Hamas on Sunday. Israeli settlers used dogs to keep Palestinians from their own properties. The Guardian reports that CIA operatives are working with Palestinian police accused of abuses. The Forward reports that the United States is helping Israel keep a qualitative military edge over any potential adversaries. Several commentaries examine ways forward on peace talks, and Martin Indyk suggests an Israeli withdrawal to pre-intifada lines to facilitate Palestinian state building.

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