Israel and the Vatican fail to resolve an ongoing dispute over a site in occupied East Jerusalem at which the "Last Supper" is reputed to have taken place. The LA Times says Israel's partial settlement freeze is not perfect but could form the basis for progress on peace. Reports differ over what is delaying an Israel-Hamas prisoner exchange, including a dispute over key prisoners, the possibility of deportation of some, and a bitter dispute between Israeli civilian and military leaders. The Christian Science Monitor says in any event an agreement will not end the siege of Gaza. Jerusalem's Latin patriarch denounces the occupation. Palestinians west of the separation barrier report ongoing settlement construction. Israeli prosecutors indict the leader of nonviolent resistance to the barrier for incitement, and a commentary in Ha'aretz says Israel is waging a war of attrition against nonviolent resistance to the occupation. A Cambridge University choir is split over a possible boycott of Israel. Palestinians say Israel is cutting Bethlehem off to tourists. Asharq Al-Awsat conducts a lengthy interview with Pres. Abbas.