NEWS: Hamas blames PM Netanyahu for a snag in prisoner exchange talks, and is reportedly considering taking a back-seat in any new government. Hamas and Fatah officials will meet again in Cairo next week. The Palestinian leadership is reportedly divided over the wisdom of a UN statehood bid in September. Former Mossad chief Zvi Zamir expresses concern that Israeli forces have opened fire on unarmed demonstrators. Palestinian officials say they will continue to insist on a complete settlement freeze as a condition for renewed negotiations. International activists play a growing role in the occupied territories. The majority of Palestinians want PM Fayyad to continue in office. The BBC looks at the Palestinian youth movement in Gaza. Olivia Snaije recounts a bicycle trip through the occupied territories. COMMENTARY: Gideon Levy says Israel can’t complain about the Syrian government shooting protesters when it does the same at the border. Ari Shavit says Dagan is right about the need for peace with Palestinians but wrong in some of his comments on Iran. D. Bloomfield says the French peace conference proposal is a good opportunity for Pres. Abbas. Larry Derfner says the Israeli military should not shoot unarmed protesters. JJ Goldberg says Israel’s leaders need to listen to Dagan. Eric Alterman says only Republicans benefit from the rift between Pres. Obama and Netanyahu. George Hishmeh says Arab-Americans should organize to counter Israeli propaganda.

NEWS: Gunmen from a faction loyal to the Syrian regime kill at least 11, and up to 20, Palestinians in a refugee camp. According to Jackson Diehl, Palestinians have shifted their demands for resuming negotiations from a settlement freeze to acceptance of the 1967 borders with land swaps as the basis for talks. The Egypt-Gaza border is reopened. After a grant from Algeria, the PA resumes paying salaries. Analysts look at difficulties facing a proposed French peace conference. Decades later, the 1967 Israeli attack on the USS Liberty continues to stir controversy. All parties are focused on European votes in the run-up to a possible Palestinian UN bid in September. A new UN report casts doubt on economic progress in the West Bank. COMMENTARY: Carmel Gould says media coverage of the conflict is becoming more balanced. Pankaj Mishra says in Palestine, as in India before it, the burden of nonviolence falls on the powerless. Tariq Alhomayed says the regimes in Syria and Iran are exploiting the Palestinian issue. Khalaf Al Habtoor says few Arabs realize the extent of Iranian-Israeli dealings at the Arab expense. Rami Khouri says PM Netanyahu is being dishonest about the refugee issue. Osama Al Sharif says Palestinians should focus on nonviolent protests against the occupation. Pierre Klochendler says Israelis are rightly concerned about the potential for another intifada after September. Yossi Alpher says there needs to be a better way of dealing with the Egypt-Gaza border. Arnaud de Borchgrave looks at conundrums facing Netanyahu.