NEWS: The PLO says Israel has given it no reason to continue with talks and dismisses Israel's proposals on borders. The continued diplomatic impasse is throwing the viability of a two-state solution into doubt. Pres. Abbas meets with EU foreign policy chief Ashton. The Palestinian election commission says it's ready and able to hold elections in May if so instructed. Hamas has effectively abandoned its headquarters in Damascus. In spite of having resigned, Dennis Ross is reportedly still providing regular advice to the Obama administration. Israel agrees to the construction of an access road for the first planned Palestinian city in the West Bank. An Israeli cabinet minister takes journalists on a tour of a West Bank settlement. In a conversation with Pres. Peres at the Davos forum, PM Fayyad says building a Palestinian state will require Israeli cooperation and Peres says a Palestinian state has in effect already been established. Pro-Palestinian hackers apologize for a cyber attack on the Ha'aretz website. COMMENTARY: David Ignatius memorializes the late Palestinian journalist Tewfik Mishlawi. Yossi Sarid says PM Netanyahu may face an angered and reelected Pres. Obama next year. Guy Bechor says Hamas is in real trouble. Herb Keinon says low-level Israeli-Palestinian talks are likely to continue. The National says the peace process is a fig leaf for the Quartet. George Hishmeh says the suggestion by a newspaper editor that Israel might assassinate Obama met with a shocking silence, except from the Jewish-American community.

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