NEWS: Israel says it will use force against another Gaza flotilla. The US continues to press for the resumption of negotiations. A boom in Palestinian soccer activity is meant to support statehood. FM Lieberman says all past agreements will be considered broken if Palestinians approach the UN in September. Palestinians say they are going to the UN with or without negotiations in progress. Palestinians reiterate their demand for a settlement freeze. Pres. Peres says without peace, Israel is in danger of ceasing to be a Jewish state. The Israeli cabinet may weaken DM Barak’s power to curb settlement activity. Egypt’s FM says Palestinian UN membership doesn’t delegitimize Israel. A Dubai bank launches a Palestinian investment fund. COMMENTARY: Ha’aretz says PM Netanyahu is condemning Israel to live by the sword. Bradley Burston says Israeli leftists must begin to talk about the right of return. Ziad Abu Zayyad says the Palestinians have no choice but to approach the UN in September. Ron Kampeas recounts Obama administration official Steve Simon’s call to Jewish American leaders. George Hishmeh says the US had better take Saudi concerns about favoritism towards Israel seriously. The Jordan Times welcomes France’s peace initiative. Abdel-Moneim Said says Israel is preventing an effective American response to the “Arab Spring.”

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