Sec. Clinton leads US Middle East peace efforts. Palestinian youth campaign for good governance. Israel allows the importation of 20 cars into Gaza. FM Lieberman again proposes stripping Israeli citizenship from some Palestinians. Former PM Olmert describes peace offers he claims to have made. A senior Hamas official is arrested in Egypt, and others arrested by the PA. A PA court suggests Palestinians who sell land to Israelis may face the death penalty, and Hamas imposes it on drug dealers. Hamas says it told the US it would accept a state on the 1967 borders. Ha'aretz describes the Palestinian plight in the face of settler violence and the occupation. Manuel Hassassian and Edward Edy Kaufman say Israeli-Palestinian peace may be a key to dealing with Iran's nuclear ambitions. Jacqueline Rose reviews a new book by David Grossman. The Netherlands cancels a visit by Israeli mayors because some are settlement leaders. Adel Safty says peace must do justice to the Palestinians. Joel Beinin looks at the struggle over Silwan. Nathan Thrall looks at Palestinian state building and the new security forces.

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