IMF says Israeli restrictions, lack of donations imperil West Bank economic growth. Administration officials say there is no US peace proposal and no plan to draft one. USA Today says Israeli policies are making it difficult to be its friend. Israeli soldiers reportedly watch as settlers beat Palestinians. Israel lifts a gag order on a journalist charged with espionage. Turkish PM Erdogan says Israel is "the main threat" to Mideast peace. Bradley Burston says a proposed UC Berkeley divestment from Israel plays right into the hands of the occupation. Gideon Levy says Israel should stop fighting the world. Ari Shavit says a deal with Syria is achievable, but not the Palestinians. Larry Derfner says PM Netanyahu is not capable of making peace with Palestinians. The National says Palestinian talk of unilateral declarations of statehood gets Israel's attention. Tariq Alhomayed says a Saudi TV cleric's plan to visit Jerusalem was a media stunt. Daoud Kuttab looks at changes in US military attitudes towards Israel. Shlomo Ben-Ami says Netanyahu's policy on Jerusalem is unworkable. Elliott Abrams says the Obama administration, especially James Jones, is threatening Israel. Ghassan Khatib says that the moment is ripe for a peace agreement. The Nation profiles PM Fayyad.

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