Israel vows to intercept the Gaza flotilla. Jacob Dayan insists Israel is a democracy. Israel's entry into the OECD is shrouded in controversy over occupation statistics. Pres. Obama and Pres. Abbas will meet on June 9 to discuss negotiations, state building. In response to PM Netanyahu, Abbas says direct negotiations should begin after borders have been agreed. Hamas dismisses the latest Amnesty International report as "a joke." Details of the Gaza blockade baffle observers. The PA establishes a $50 million fund to help Palestinian settlement laborers find alternative work. The Israeli military issues new rules of engagement. Over 100 Palestinian children report abusive treatment by Israeli soldiers in 2009. Yossi Sarid says Israel is better at boycotting than the Palestinians. PM Fayyad hands out boycott leaflets in the West Bank. The new National Security Strategy document affirms the US interest in Palestinian statehood. Israel establishes a mechanism to "compensate" settlers for the partial moratorium. An extremist rabbi bans women from settlement elections. Aluf Benn calls for an interim agreement based on provisional Palestinian statehood.

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