The Jerusalem Old City Initiative releases new proposals, and former New York Mayor Ed Koch also has suggestions. Fatah accuses Israel of planning a large mall in occupied East Jerusalem. Israel is refusing to allow the relative of an assassinated Hamas operative to leave Gaza for urgent medical treatment. Pres. Obama and Pres. Abbas reportedly agree to begin talks with border and security issues. Former PM Olmert says Arab neighborhoods in Jerusalem must belong to the Palestinians. The Arab Bank shuts down all its operations in Gaza. Pres. Obama reiterates his commitment to a Palestinian state and holding both sides accountable. Palestinians say Israel is withholding Jerusalem access for students who refuse to become informants. Ben White says Israel is trying to stifle dissent. Palfest promotes Palestinian writers. JJ Goldberg examines incitement. Mkhaimar Abusada says a failure of talks will create a period of volatility in Palestinian politics. Gilead Sher says the US must remain hands-on. Michael Sfard says the settlement movement may benefit from the partial moratorium. Eyal Press asks what the Israelis really think of Obama. Gilbert Achcar looks at Arab and especially Palestinian attitudes towards the Holocaust.

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