Palestinians say public employees cannot be paid if Israel withholds tax revenues. Some see the Fatah-Hamas deal as a new chance for peace. Jimmy Carter says the US should support the agreement. Fatah plans to review its strategies. France increases aid to the PA to offset Israel’s actions, the UN asks Israel to release the funds, and the US calls the Israeli move “premature.” PM Fayyad calls the fiscal situation “impossible.” The head of J Street says Israel must act now on peace. Pres. Abbas says Palestinians are determined to win UN recognition in September. Pres. Peres says Israel might negotiate with Hamas. The Globe and Mail profiles a Palestinian billionaire. Ha’aretz says Israel is evading reality. Pres. Obama sends Israel Independence Day greetings. Amr Mousa says Hamas is not a terrorist organization. Issa Bourshieh says Israel must embrace its Arab citizens. A powerful film about Palestinian nonviolent protests against occupation is released on DVD. CUNY reverses its decision not to honor Tony Kushner. The daughter of a right-wing Israeli Rabbi talks about meeting Abbas. Palestinian citizens of Israel feel disenfranchised. Attention is on the effect of the Palestinian unity deal on Hamas’ policies, and Asharq Al-Awsat interviews one of its leading figures. Ghassan Khatib says Palestinian dialogue may foster Hamas moderation, and Mkhaimar Abusada says the international community can help, but Yossi Alpher says Hamas has not changed yet.

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