The New York Times looks at the controversy over PM Netanyahu's intentions on peace. The PLO extends the terms of Pres. Abbas and the Palestinian parliament in light of Hamas'refusal to agree to new elections. Israel's Consul General to New England says his country is ready for peace. Egyptian mediators propose a reconciliation summit between Fatah and Hamas, as student groups clash in Gaza and Hamas says 80 of its members have been arrested by PA police. The EU is set to deliver €200 million to the PA over the next three years. Abbas says that peace is possible in six months if Israel agrees to complete settlement freeze, and reports suggest that the US, Egypt and France are planning to try to restart peace talks based on the 1967 borders involving a complete but unannounced freeze. The new EU foreign policy chief will be traveling to Jerusalem. Israeli police raid the home of nonviolent Palestinian protesters. Jewish extremists plan another provocative march in occupied East Jerusalem. A commentary in the Guardian says Jewish internal dialogue about Israel needs to be more civil. Rami Khouri says that it's unfair for anyone to blame the Goldstone report for the present diplomatic impasse.

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