NEWS: Israel allows a shipment of construction materials into Gaza. Pres. Abbas will meet Hamas leaders next week, and Israel accuses him of preferring to deal with Hamas over peace with Israel. Israelis accuse a Palestinian journalist of being “an Iranian agent.” PLO officials dismiss reports, citing European diplomats, of a secret deal to release Palestinian tax revenues. The widow of the late Pres. Arafat says she never took any public money. The Israeli economy again faces the threat of a slowdown or recession. Concerns are growing over settler violence. Palestinians are reconsidering their diplomatic options.Israel has been building multibillion-dollar electronic weapons that could be deployed in the event of an attack against Iran. COMMENTARY: Michael Cohen says Palestinians and other Arabs have learned historical lessons but Israel and the US haven't. Gideon Levy says PM Netanyahu is Israel's last hope for democracy. Ari Shavit says without its political left, Israel would be a backward country. Musa Abu Hashhash says events in Hebron show religious extremists on both sides pose a grave danger. Douglas Bloomfield asks if Middle East peace has become a mission impossible. Dan Stein says pro-Palestinian activists have created a controversy within the occupy Wall Street movement. Trudy Rubin says the peace process is the victim of neglect. Khaled Diab profiles Palestinian “freedom riders.”

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