NOTE: The ATFP Daily News Roundup will resume publication on Tuesday, January 3. Happy holidays. NEWS: Israel has literally 101 types of permits governing the movement of Palestinians living under occupation. The PLO tells the quartet it will resume its UN statehood bid activities if there is no movement on the peace process within the next month. Palestinian groups establish a committee to consider restructuring the PLO, possibly including Hamas and other groups. Hamas says such a deal would strengthen both Palestinian parties and the PLO in its negotiations with Israel. Analysts and even Hamas officials say the group is responding to a deep crisis. UNESCO cuts funding to a Palestinian magazine that published an article sympathetic to Hitler. Israel's mayor in Jerusalem says he wants to shift the city's municipal boundaries to approximate the West Bank separation barrier. Congress earmarks $235 million for Israeli antimissile systems. Gazan Christians complain Hamas has effectively banned Christmas celebrations. Hamas leader Mishaal touts non-violent protests but does not renounce violence. American Charities for Palestine donates $27,000 to St. John's Eye Hospital in Jerusalem to combat blindness among Palestinians. COMMENTARY: Yoel Marcus says PM Netanyahu's choice of advisers is a source of real concern. Abdelrahman Al Ahmar describes life under the occupation and how Israel came to define him as a “terrorist.” Ha'aretz says settlers might see dismantling of unauthorized outposts as an injustice, but they violate Israeli law. Omar Ghraieb says a drug-related double-murder has shocked the Gaza Strip. Jay Bushinsky says Israel's diplomacy is being undermined by behavior in the occupied territories that does not conform to international norms. Frida Ghitis says Israel is suffering from self-inflicted wounds. Joseph Dana looks at the writings of jailed Palestinian leader Marwan Barghouti.

NEWS: Hamas officials say six steps towards reconciliation have been agreed and that Palestinians have formed a committee to oversee new elections. Israel faces strong criticism for settlement activities from UN security council members. The PA has signed a free trade agreement with the South American trading bloc Mercosur. Israel pledges to release 1 billion cubic feet of water to restore the Jordan River. The Israeli government's watchdog agency says the country is ill-prepared for war. Egypt shuts the Gaza border crossing after a dispute with Hamas. Pres. Assad reportedly refuses to meet with Hamas leaders and Iran has cut funding to Gaza. Major Jewish-American donors are reportedly sticking with Pres. Obama. The BBC profiles the 'Iranian Schindler' who saved thousands of Jews from the Nazis during World War II. A war of words is escalating between the Israeli government and the New York Times. COMMENTARY: Zvi Bar'el says only the Israeli military can convince the public of the dangers of Jewish terrorism. Amira Hass says Palestinians are heros for resisting the occupation. Moshe Ronen says its simply a fact that Israeli law and law enforcement favors Jews. Ron Kampeas says Vaclav Havel will be remembered as a friend of Jews and Israel. Scott Bobb says the peace process is totally deadlocked. Victor Kotsev critiques Israel's response to the Arab uprisings. BrandeisNOW interviews Khalil Shikaki. Leonard Fein looks at a growing "distancing" between younger Jewish Americans and Israel. Elliott Abrams criticizes Iceland's resolution recognizing Palestine.