PM Netanyahu finds himself caught between his coalition partners and the United States, but no agreement has been reached. In spite of the ongoing controversy, the US and Israel sign a major arms deal and Israelis say Gen. Petraeus affirms defense links. Julian Kossoff says Jewish American support for Obama in the confrontation is heartening. The LA Times profiles the Palestinian security forces. Christopher Hazou says Israel has glorified terrorists. The Boston Globe Supports Sec. Clinton's "tough love" for Israel. Occupation authorities are preparing to allow Palestinians to use a major West Bank highway. Yossi Verter says Netanyahu needs to shape up before relations with the US get worse, but Akiva Eldar says it's too late. Palestinians say the US has asked Israel to cede control of more West Bank areas to the PA. Arab foreign ministers pledge $500 million to support Palestinians in Jerusalem. Time asks if it is too late to share Jerusalem. Lara Friedman and Daniel Seidemann explain the top six bogus excuses for East Jerusalem settlement expansion.

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