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.