Israel has a mixed blessing in the GOP midterm successes. Palestinians issue a report questioning the history of the Western Wall. Israel refuses to allow Palestinians to use a road they have built in Area C. Italian officials call for easing restrictions in Gaza. Occupation forces seize parts of Nablus. Islamists claim the PA is discriminating against them. A Gaza boy recalls being used as a human shield by Israeli troops. Israeli plans for a train line deep into occupied territory spurs Palestinian concerns. US efforts to restart peace talks stumble. DM Barak says the Israeli cabinet may have to change. Israel will allow limited exports from Gaza. Activists try to reenergize the Israeli left. AB Yehoshua says Zionism is not an ideology. Settler schools agitate against any settlement freeze. Israeli scholars say Jews are now a minority between the river and the sea. Two new books look at the refugee issue. Khaled Diab says the EU should pressure Israel on peace. The Forward says the proposed settlement freeze deal is bad for both Israel and the US. George Hishmeh says it's high time for the UN to include Palestine as a member state.

Pres. Medvedev visits the West Bank, reaffirms Russian commitment to Palestinian statehood, and demands an end to Israeli settlement activity. An Israeli citizen has been arrested in connection with the Srebrenica massacre.The Arab League praises Palestinian diplomatic efforts for more recognition. A Palestinian man is killed by Israeli forces in Gaza. PM Fayyad says Palestinian tax revenues must increase to offset dependence on foreign aid. The Middle East Quartet will meet in Munich in February. The Israeli military is digging in for future conflicts. Aluf Benn says Israel cannot stop Palestinian independence. Recognition of Palestine by Spain and Caribbean islands may be in the offing. The Palestinian flag is raised at the PLO Mission in Washington for the first time. Hammas announces a rebuilding program in Gaza. A strike by Israeli Foreign Ministry workers is severely hampering Israel's diplomacy. Pres. Abbas urges the Quartet to pressure Israel. PM Netanyahu will attend the AIPAC conference in Washington in May. Arab states have formally submitted a draft resolution on settlements to the UN Security Council. Daniel Levy says the Labor Party and its political traditions are finally dead. Hussein Ibish says the Hariri assassination Tribunal report may give Hezbollah a similar experience Israel had with the Goldstone Report.

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