Israel's mayor is attempting to relocate Palestinians in occupied East Jerusalem as Israel is planning more settlement activity. Clashes continue in Hebron over Israel's claim on holy sites, PM Netanyahu seeks to defuse tension, and J.J. Goldberg says this is the last thing Israel needs. The UAE seeks justice in the Mabhouh assassination but has no leverage, as Israel faces a mounting international backlash. Some Palestinians in Gaza favor closing smuggling tunnels. The UN is not satisfied with either Israel's or Hamas' responses to the Goldstone report. The PA denies that proximity talks will begin next week. Hamas bars a Fatah delegation from visiting Gaza. A newspaper claims Special Envoy Mitchell sought to resign. PLO officials threaten to adopt a one-state policy. A poll suggests growing support for Israel in the United States. Henry Siegman says Israel's legitimacy and future as a Jewish state depends on a two-state agreement. The EU rules that settlement goods are not Israeli. Tariq Alhomayed says the Palestinian issue is a source of emotional blackmail. Palestinians in Lebanon form a new faction.

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