Martin Indyk says PM Netanyahu must choose between confronting his right wing or the US president, and that when Israel can go it alone, it can decide things on its own. FM Lieberman says an "imposed solution" would provoke violence. Hamas burns recreational drugs, taxes cigarettes. The PA denies reports of an upcoming peace summit. US officials strongly criticize an ad saying Jerusalem is beyond politics. Bradley Burston says Israel must be freed of the occupation. YNet interviews PM Fayyad on state-building and nonviolent protests. The Israeli military complains about settler violence, prepares for a West Bank pullback. The New Israel Fund gets more donations in the wake of intense criticism. American Jewish leaders are criticizing the administration in public, but defending it in private. Israeli and Palestinian villagers build relationships across the Green Line. Rahm Emanuel says there is no US peace plan. The UN says Palestinian armed factions in Lebanon are a threat to regional stability. Bret Stephens says the US should leverage Israeli concerns about Iran for progress on settlements. Rashid Khalidi says Israel is acting in bad faith in Jerusalem.

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