An Israeli stirs controversy by making keffiyehs featuring the Star of David. Landmines are an ongoing problem in the occupied Golan Heights. PM Fayyad again demands an end to Israeli raids and settlement activity. A senior Fatah official says it will reopen its headquarters in Gaza. The PA says it will hold local and municipal elections in July, and reiterates terms for resuming negotiations, but Pres. Abbas says he is still waiting for clarification from the US. Hamas opposes elections and accuses the US of blocking peace and Palestinian reconciliation. The new Palestinian security forces continue to gain ground. Officials say settlers are unlikely to prevail in trying to hold onto a seized Palestinian house in occupied East Jerusalem. The National says Special Envoy Mitchell's approach may still pay off. Hassan Barari looks at the implications of a public handshake between senior Israeli and Saudi officials.

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