VP Biden arrives in the Middle East. A new book traverses Jewish and Arab narratives. Special Envoy Mitchell formally announces new proximity talks, but PM Fayyad says Israel must abide by its agreements and Palestinians say this is the last chance for negotiations. The PA says its budget deficit will fall in 2010, condemns settlement expansion and backs nonviolent protests in spite of Israeli pressure. Israel issues an "exception" for 112 new settler housing units. The Dubai assassination is having global consequences. Israel warns the PA to crack down on protests. The PA is planning to prevent Palestinians from working to build settlements. The Jordan Times critiques the increasing fundamentalism of Hamas rule in Gaza. Uri Avnery says Israel uses history and archaeology for political purposes. Ghassan Khatib says the international community must get involved in the Middle East peace process.

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