NEWS: Israeli society is divided over free-speech rights. Gaza border violence is another major challenge to Palestinian statehood. Two Palestinians are killed by occupation forces in the West Bank. The PA says it will pay its employees full salaries starting Tuesday. One Lebanese soldier dies in an exchange of fire with Israeli troops at the border. PM Netanyahu says he's working with the United States to try to restart diplomacy. Israel plans to build another separation wall, this time in the Golan Heights. The “Palestinian Popular Committees” plan a civil disobedience campaign in the occupied territories for September. Fatah leader Mohammad Dahlan launches a barrage of accusations against Pres. Abbas. Palestinians in Lebanon voice growing support for Syrian protesters. COMMENTARY: ATFP President Ziad J. Asali urges the parties to find a compromise at the UN. Amira Hass interviews economist Raja Khalidi. Edgar Bronfman and Adam R. Bronfman say Netanyahu should go to Ramallah on a peace mission. Raghida Dergham says the atmosphere at the UN on the Middle East is starting to resemble the Cold War era. Charles Hawley looks at connections between the Israeli and European ultra-right. The Gulf News says Dahlan should be fully prosecuted. Dominique Moisi says Israel is much more economically fragile than it appears. Trudy Rubin says Israeli insiders are concerned about the drift away from 2-state discussions. Xelena Gonzalez says Israel's water discrimination in the occupied territories is disgraceful.

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