UPDATED Gaza Latest: Is Aid Ship On Its Way or Going Back to Egypt?

UPDATE 1930 GMT: Al Jazeera reports that the ship "now appears bound for the Egyptian port of El-Arish, on the Sinai peninsula. The Israeli navy warned the vessel on Tuesday to change course, and said it had 'begun preparations for stopping the ship'."

UPDATE: The Amalthea has now reportedly changed course back to el-Arish in Egypt. Its location can be tracked through a map on Electronic Intifada.

The tale of the Amalthea, the ship laden with aid for Gaza, has gone through literal twists and turns today. One of the ship's owners, Greek businessman Aleksei Angeolopoulos, said in an interview with the Arabic newspaper Ashraq al-Awsat that Amalthea would unload its humanitarian goods in the Egyptian port of el-Arish if permission to reach Gaza was denied. However, in the afternoon, the ship refused to alter its destination when it was confronted by an Israeli vessel which ordered to dock in Egypt's el-Arish port.

Gaza Latest: Israel’s Flotilla Enquiry, Germans Ban Turkey’s IHH, & Libyan Aid Ship

Stating that the ship was carrying only humanitarian materials, Angeolopoulos said:

If Israel wants, the Israeli navy is invited to board the ship and to search it so that they can see with their own eyes that it is only carrying food and allow it to continue to the port of Gaza.

The ship is planning to reach Gaza on Wednesday.

Israel-Palestine Analysis: What Can Netanyahu Offer the Palestinians?

On Monday the Jerusalem municipal planning committee approved construction of 32 new apartments in a Jewish neighborhood in the Pisgat Ze'ev across the Green Line.

Elisha Peleg, a member of the Jerusalem Municipal Planning and Construction Committee, said: "We will continue to plan and build in every neighborhood in this city and we will not allow external forces to intervene."

The development comes days before US special envoy George Mitchell arrives for talks with Palestinian Authority leader Mahmoud Abbas, who in turn meets Egyptian President Hosni Mubarak before the weekend.

While some argue that Ramallah will not go to direct talks when the four-month proximity discussions end in September --- since Israelis have not agreed to continue the December 2008 negotiations and to halt construction both in East Jerusalem and in the West Bank --- Yasser Abed Rabbo, a Palestine Liberation Organization official, hinted a possible deal. He said:

We don't know that the proximity talks have stopped. Mitchell is coming next week, and the context and the core of the talks are more important to us than the way they are being held.

If the Palestinians move from proximity talks to direct talks, I believe that the negotiations between Israel and the Palestinians will be similar to the type of negotiations between the two sides before it stopped in December 2008.

PA officials in Ramallah on Monday did not rule out the possibility. “We don’t rule out direct talks,” said one official. “But before we move to these talks, we want to have a clear agenda and timetable.”

Ramallah will not make a decision without the Arab League's confirmation but the advance towards direct talks can only come with Israel's clear pledges for the continuation of discussions stopped in December 2008. Even then, it is not going to be easy for the Palestinian Authority to sit on the table when construction is continuing in East Jerusalem, let alone when the freeze on building in the West Bank end in September.

The Palestinians are likely going to ask for a public declaration of intent to make East Jerusalem the capital of a future Palestinian state. Whether that is enough to swallow the Israeli refusal, in advance of talks, to curb settlements is unknown.

Even so, given the various interests of a broad Israeli coalition, can Netanyahu even go this far to fulfil his claim that he is ready for direct exchanges with his Palestinian counterparts?

Gaza Latest: Israel's Flotilla Enquiry, Germans Ban Turkey's IHH, & Libyan Ship En Route to Gaza

Israel's Enquiry: Last week, the Israeli Government agreed to expand the powers of the civilian Turkel Commission to include the right to subpoena witnesses. However, this was not satisfactory for activist organization Gush Shalom who requested that the committee be given the power to investigate soldiers as well. The High Court's response was not to discuss the petition further unless the commission requests that it carry out such an investigation.

Meanwhile, the head of  the military committee, Maj.- Gen. (res.) Giora Eiland, has presented the Israeli Chief of Staff, General Gabi Ashkenazi with a 100-page report detailing findings over into the military operation against the Freedom Flotilla's Mavi Marmara.

Gaza Latest: Amalthia to Break the Siege?, Ireland’s “Revenge”, Mavi Marmara Becomes a Hotel?

The report says that there were only "operational mistakes" but no "operational failures" made in the planning stage of the operation. The committee criticized the Navy for not preparing a “Plan B” for the operation and said the commanders should have reconsidered putting commandos onto the Mavi Marmara’s upper deck after noticing from sea and air that there were several dozen activists on board prepared to violently resist.

The committee also said that military intelligence did not designate Turkey or the flotilla's organiser IHH as a target for gathering of information. Eiland described Turkey as "a friendly country up until 2010" and assessed the relationship with Israel as a "deteriorating" one.

Germany Bans IHH: On Monday, Germany banned the International Humanitarian Relief Organization (IHH), the organiser of the Freedom Flotilla. German Interior Minister De Maiziere said organizations that "directly or indirectly work against Israel's right to exist lose their right to be active in Germany." The first response came from the European Jewish Congress (EJC):

Over a month ago we called on front-groups like the IHH to be proscribed and banned from raising funds in Europe, we encourage the European Union to give this the highest priority. Now that Germany has shown the way, we hope that European Union and other European governments will officially ban the IHH.

It is vital that the European Union and European governments act quickly to ban organizations which pose as charities or humanitarian agencies from raising funds that assist terrorism, murder and militant activity.

Libyan Ship to Arrive Gaza on Wednesday?: The Libyan-backed aid ship, the Amalthea, is to arrive at Gaza on Wednesday, according to Agence France Presse.

The website of the charity funding the ship, headed by Saif al-Islam Gadaffi, son of Libyan leader Muammar Gaddaffi, stated that "the crew on board the ship maintains a positive mood".

Haaretz reports military officials' statements that IDF is ready for forceful interception despite continuing criticisms.

Israel-Palestine Analysis: Netanyahu Manoeuvres with US & Egypt to Put PA in a Corner

UPDATE 1030 GMT: Juan Cole has posted a complementary analysis, beginning with the Palestinian Authority's position, "Abbas: Israeli Colonization Impedes Start of Direct Talks".

Israeli Prime Minister Benjamin Netanyahu is talking about bringing the Palestinians on the table for direct talks. But how?

It is reported that, following consultations with some of his ministers, Netanyahu is thinking of announcing an end to Israel Defense Force operations in a number of Palestinian cities in the West Bank. Haaretz reports, from "senior officials", other confidence-building measures:

Gaza Latest: Amalthia to Break the Siege?, Ireland’s “Revenge”, Mavi Marmara Becomes a Hotel?
Israel-Palestine Dance-Off Video: Tik-Tok Soldiers & a Palestinian Response

- Israel will enable the Palestinian police to broaden its activities beyond Area A, which is under PA security control. They would be allowed to set up six new police stations in Area B, where the PA is currently responsible only for civilian affairs, and possibly also have some authority over civilian matters in Area C.

- Israel will lift more road blocks in the West Bank.

- Israel will transfer to Palestinian control a portion of land that is currently in Area C, under full Israeli control, in order to build a road connecting Ramallah and a new city currently in the planning stage, Rawabi.

With the Palestinian Authority under pressure from the Obama Administration to start the direct talks with Israel, Netanyahu is wisely trying to corner the PA and also other possible actors such as the Egyptian Government. PA leader Mahmoud Abbas rejected Obama's approach to change his mind, but Netanyahu, at his cabinet meeting on Sunday, stated that he planned to meet President Hosni Mubarak in Egypt on Tuesday to discuss how progress in negotiations can be achieved.

What is the benefit for Egypt? At a time when channels of dialogue are open with Hamas to some extent, following the Freedom Flotilla crisis, Cairo can use this initiative to push for Hamas flexibility in a Palestinian reconciliation agreement. It can boost its regional and domestic credibility by playing the role of second mediator between Ramallah and West Jerusalem.

Asked in an interview with Fox News whether there can be a Palestinian state by 2012 (a follow-up Palestinian leader Salam Fayyad's "A Palestinian State by 2011" statement), Netanyahu said:

I think there can be a solution. It may be implemented over time, because time is an important factor of getting the solution, both in terms of security arrangements and other things that would be difficult if they're not allowed to take place over time.

Can we have a negotiated peace? Yes. Can it be implemented by 2012? I think it's going to take longer than that.

Israel-Palestine Dance-Off Video: Tik-Tok Soldiers & a Palestinian Response

In response to footage of six Israeli Defense Forces soldiers stopping patrol to dance to American electro-pop singer Kesha's hit Tik Tok in the West Bank city of Hebron, Palestinians shot a video showing two kaffiyeh-clad men searched, handcuffed and arrested as Lady Gaga's Poker Face plays in the background.