Pres. Abbas says he would return to negotiations if Israel halted settlement activity "for a fixed time." Hamas is seeking to lower tensions with Israel and Egypt, and vows to halt any attacks against Israel from Gaza. PM Fayyad accuses Israel of trying to isolate the PA, and launches a fund aimed at ridding the Palestinian economy of settlement products. More extreme groups challenge Hamas in Gaza. The US expresses support for Egypt's new Gaza border wall. Egypt reiterates its insistence on the creation of a Palestinian state. A Ha'aretz commentary says PM Sharon succeeded in cutting Israelis off from the realities of conflict. A YNet commentary says FM Lieberman's policies are making Israel look ridiculous. A huge majority of Israelis support negotiations with the PLO. The Pope calls for a two state solution. Rami Khouri says he has not lost his faith in the American people, but Osama Al Sharif warns of the dangers of failed negotiations. An ATFP original translation of an article by Hassan Khader critiques the "mass-man" mentality in the contemporary Arab world.