The LA Times says that Israel is building a barrier along its border with Egypt. Several sources look back at the Gaza war one year on, as Hamas says it's ready for another conflict. Reports suggest that Hamas may be flexible on the deportation of released prisoners, and Ha'aretz says that it is likely to accept Israel's latest offer. Israeli cabinet minister Binyamin Ben-Eliezer says that jailed Fatah leader Marwan Barghouti should be released, but not in the context of a deal with Hamas. A leadership battle threatens to split Israel's Kadima party. A UN official accuses the international community of the "tragic" failure in Gaza. A YNet commentary says that settlers are on a collision course with mainstream Israeli society. More young Israelis pledge to disobey orders to evacuate settlements. West Bank shepherds say their livelihood is threatened by drought and occupation. The Guardian reports on Christmas in Bethlehem under the shadow of the separation barrier, as Palestinian Christians from Gaza pray for peace. Neve Gordon says Israel is determined to break nonviolent Palestinian resistance in the occupied West Bank.

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