Coverage continues of Sec. Clinton's remarks at the Fifth Annual ATFP Gala. MK Tibi says Israel's new loyalty oath is a repudiation of Palestinian citizens. Settlers race to construct housing in the West Bank. Palestinians say negotiations are on hold until the US midterm elections. Settlers attack Palestinian olive harvesters. Pres. Peres says peace with the Palestinians would help the US deal with Iran. The PA uncovers a Hamas arms cache in the West Bank. Bradley Burston says FM Lieberman is the new Kahane. Israel prepares for possible unilateral measures. PM Netanyahu says Kadima is not joining his government. The US is also mulling a “plan B” on peace. George Hishmeh asks what maneuver Netanyahu will come up with next. IPS profiles former Israeli soldiers opposed to the occupation.

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