The PA issues a major new state and institution building document. The Obama administration scales back expectations on Middle East peace, but along with Israel and Egypt continues to pressure Palestinians to return to talks. Israel's partial settlement moratorium impacts Palestinian laborers. The term of the Palestinian parliament expires. PM Fayyad says Europe should be more engaged. Settlers attack Palestinians in retaliation for the demolition of an outpost settlement. The PA cabinet regrets the lack of elections. 54 House members urge the Obama administration to seek the end of the siege of Gaza. Special Envoy Mitchell may engage in "shuttle diplomacy." Another diplomatic dispute is brewing over the Goldstone report. The UN expresses frustration on Gaza rebuilding. A settler rabbi is arrested in connection to a mosque arson in the occupied West Bank. Israel plans to absorb 7,000 Indian villagers purportedly from a "lost Jewish tribe" near Myanmar. The Daily Star says anger at Israel's actions is understandable.