PM Fayyad explains the state-building program. Palestinians object to Israel's latest settlement expansion plan in occupied East Jerusalem. Leaked cables suggest Israel considered Pres. Abbas to be weak and unpopular and Pres. Peres called the Oslo agreements a mistake. A former PLO leader dies in Jordan. Fayyad is named among the world's top 100 thinkers. Aid groups say the Gaza blockade remains devastating. Israel has a new spy chief. The Non-Aligned Movement calls on Israel to cease settlement activity. Palestinians mark the 63rd anniversary of the UN partition plan. Gaza farmers are now exporting to Europe. Akiva Eldar calls PM Netanyahu unreliable. Israeli hummus is the target of a boycott campaign at Princeton. Abbas calls settlements a time bomb. Likud MKs and members call for Netanyahu's ouster. Hassan Barari says the Arabs must make continuing the occupation more costly than ending it. A sick Palestinian toddler's fight for her life is complicated by the occupation.

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