NEWS: Gunmen from a faction loyal to the Syrian regime kill at least 11, and up to 20, Palestinians in a refugee camp. According to Jackson Diehl, Palestinians have shifted their demands for resuming negotiations from a settlement freeze to acceptance of the 1967 borders with land swaps as the basis for talks. The Egypt-Gaza border is reopened. After a grant from Algeria, the PA resumes paying salaries. Analysts look at difficulties facing a proposed French peace conference. Decades later, the 1967 Israeli attack on the USS Liberty continues to stir controversy. All parties are focused on European votes in the run-up to a possible Palestinian UN bid in September. A new UN report casts doubt on economic progress in the West Bank. COMMENTARY: Carmel Gould says media coverage of the conflict is becoming more balanced. Pankaj Mishra says in Palestine, as in India before it, the burden of nonviolence falls on the powerless. Tariq Alhomayed says the regimes in Syria and Iran are exploiting the Palestinian issue. Khalaf Al Habtoor says few Arabs realize the extent of Iranian-Israeli dealings at the Arab expense. Rami Khouri says PM Netanyahu is being dishonest about the refugee issue. Osama Al Sharif says Palestinians should focus on nonviolent protests against the occupation. Pierre Klochendler says Israelis are rightly concerned about the potential for another intifada after September. Yossi Alpher says there needs to be a better way of dealing with the Egypt-Gaza border. Arnaud de Borchgrave looks at conundrums facing Netanyahu.

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