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•  US Marines push deeper into southern Afghan towns (AP)

•  SKorea says NKorea fires 2 missiles off east coast (AP)

•  Iranian cleric: British Embassy staff to be tried (AP)

•  VP Biden urges Iraqis to make political progress (AP)

•  Honduras rejects OAS appeal to restore president (AP)

•  U.S. and Russia: The Talk Starts Here (Time.com)

•  Madonna plans Jackson tribute at London show: report (AFP)

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•  Medici lawyer says Kohn didn't get Madoff payments (Reuters)

•  Teck to sell 17 percent stake to China for C$1.74 billion (Reuters)

•  Earnings to set tone for stocks in week ahead (Reuters)

•  Stanford clients sue insurance broker Willis Group (Reuters)

•  Dollar status unlikely to be in G8 communique: G8 source (Reuters)

•  Earnings to set tone for stocks in week ahead (Reuters)

•  Fannie, Freddie ease terms for mortgage refinance (Reuters)

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Israel Tourism
Arabs shouldn't live with Jews, Shas minister says
MK Tibi slams Attias, saying minister's remarks "border on violating the law against incitement to racism."



Haifa U Chairman: 'Freedom of speech on campus has limitations'
Racists should be barred, says Leon Charney, after Salah lecture scandal.



Edelstein: Most Likud ministers would back rebuilding Homesh
Diaspora affairs minister responds to suspected desecration by Palestinians of books left in a Homesh yeshiva.



Israel worries over intense 'legal war'
Officials: Cast Lead war crimes cases part of effort to ensure IDF won't use force against terror groups.



'Saudis block US push for normalization'
Settlement freeze won't guarantee Arab world will normalize Israel ties; Ayalon calls for reciprocity.



Gaza girl may have been killed by IDF fire
Army changes assessment after initially saying she was killed by Palestinian mortar fire.



The tax no one wants to collect
Water Authority hopes 'draught levy' will deter wastefull households.



New legislation would allow women to be tried as rapists
The legislation will adjust existing law, which until now could only be applied to men.



Poll: Israeli Jews want access to holy sites even under PA rule
51 percent favor negotiations with Palestinians without pre-conditions.



Israeli artists remember modern dance pioneer Pina Bausch, who has died in Germany at 68
Israeli dancer and choreographer Rina Schenfeld says Bausch "loved Israel."





Man 'comes back to life' in Ramat Gan
Health Ministry probes case of 84-yr-old who moved his hand after being pronounced dead by doctor.



Arsonists blamed for wave of wildfiresin North
Fires come less than 24 hours after 1,000 dunam of growth destroyed by blazes; 2 nabbed for arson.



Hamas, Israel reject Amnesty claims
Cast Lead report accuses IDF of reckless use of weapons, Gaza groups of committing war crimes.



Rivlin apologizes to PM as Likud dissenters tone down criticism
Netanyahu-Rivlin poor relations reached a crisis point after the speaker blasted the prime minister in an interview with 'Ma'ariv.'



Winner of prestigious Sapir Prize forced to give it back
Comes after concerns raised about conflict of interest between author and one of the judges, Yossi Sarid.



Navy mulls building ships locally
Plan comes as American ship costs soar; alternative options awaiting IDF General Staff approval.



Druse, Circassians intensify protest
Convoy causes disruptions on Acre-Carmiel road in demo against unfulfilled budget promises.



'Gafni bill' to increase haredi school funding passes first reading in stormy session
MK Moshe Gafni (UTJ) dragged out of the hall by guards as he called out in defense of the bill that bears his name.



Letters from prison reveal how gangsters plotted each other's demise
'Shai, you love me, plant some kind of device… to let them know I'm not kidding,' one letter reads.



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