NEWS: Palestine's UNESCO membership sets off a confrontation over US funding, and there are concerns it could have significant costs to Palestinians as well. Palestine will seek world heritage status for various sites in the occupied territories. The US has initiated an initial cut off of funding to UNESCO. The CSM looks at ramifications for four key players. Palestinians now may try to join 16 other multilateral agencies. Israeli forces demolish 5 Palestinian homes in occupied East Jerusalem. A prominent Israeli NGO says Israel is forcing Palestinians out of Jerusalem. Egypt says Israel has agreed to delay further military actions in Gaza. Bosnia says its federation cannot agree on the Palestinian UN membership application and will abstain, meaning a Security Council majority in favor is virtually impossible. COMMENTARY: Judge Goldstone says Israel is not an “apartheid state.” Dimi Reider says freedom of speech is under attack in Israel. Akiva Eldar says PM Netanyahu is pursuing a policy of acquisition of territory by force. Amos Harel says Israel's military now prefers its soldiers to be killed rather than captured. Gershon Baskin says would be disastrous for the US to cut off all aid to the PA except security support. Susan Hattis Rolef says Israelis need to decide what they mean by “Jewish state.” The Daily Star says it's high time Palestine was admitted to UNESCO. Yossi Alpher says the latest Quartet initiative is pointless and depressing. Ghassan Khatib says Israel's new settlement construction plans are a direct challenge to the authority of the Quartet. Bernard Avishai says anyone who thinks boycotts are bad should be disturbed by the Israeli reaction to Palestine's UNESCO membership.

NEWS: An American-Israeli is released by Egypt, but the agreement shows brittle ties between the countries. Bosnia says it cannot come to a consensus on Palestine's UN membership application. The Palestinian envoy to the UN files an official complaint against FM Lieberman's comments about Pres. Abbas. Abbas may discuss the future of the PA with Hamas. AP looks at the changing face of Christianity in the “holy land." Fatah has officially fired Mohammed Dahlan from his final remaining party post. Ha'aretz reports that Kadima leader Livni may have undermined negotiations under PM Olmert. Two recently released Palestinian prisoners get married. A company has lost a major contract in Saudi Arabia because of its involvement in Israel's light rail project in occupied East Jerusalem. COMMENTARY: Yoel Marcus says Abbas must choose to pursue peace with Israel. Don Futterman says Israel's abuse of Bedouins shows it still cannot treat its citizens equally. Uri Savir says peace is the only way to avoid more prisoner swaps. Hirsh Goodman says Israel would be wise to avoid being an issue in the US presidential campaign. Dawoud Abu Lebdeh says the international community must support those who believe in negotiations and nonviolence as a path to peace. Zvika Krieger asks what former Sec. Rice gets right and wrong in her account of the 2007 negotiations. Alan Elsner says Palestinians will be responsible if the US withdraws from UNESCO. May Marei outlines the challenges facing Palestinian travelers. Ron Kampeas says that in spite of media reports, he can find no evidence the United States asked Israel for another settlement freeze. Tom Perry says the Quartet finds itself hopelessly deadlocked.