UPDATED 1020 GMT: Would you like a story that might be even bigger than Israel's announcement of a revised blockade policy? Try this from Zaman:"The Defense Industry Implementation Committee (SSİK) convened under the chairmanship of PM Recep Tayyip Erdoğan to take up the issue of military agreements and projects with Israel. Turkey -- which recalled its ambassador to Tel Aviv and cancelled three military exercises in the aftermath of a bloody Israeli raid on the Mavi Marmara aid ship -- has shelved 16 bilateral agreements due to Israel's refusal to apologize for the killings or pay compensation.Thus, all Turkish-Israeli agreements at the state level have been cancelled....All bilateral projects in the field of military training and cooperation will be frozen; a $757 million plane and tank modernization project and a missile project worth over $1.5 billion have already been shelved. The majority of work on these projects was planned to be cooperative Turkish-Israeli efforts.Gaza Flotilla Aftermath: Does This Video Show Israeli Commandos “Executing” Turkish-American Furkan Dogan?
UPDATED 0945 GMT: The Israeli Prime Minister's Office has announced that Israel will ease its land blockade on Gaza, expanding the number of products allowed into the area, including construction materials: "It was agreed to liberalize the system by which civilian goods enter Gaza (and) expand the inflow of materials for civilian projects that are under international supervision."The statement said "existing security procedures to prevent the inflow of weapons and war materiel" would continue. There was no reference to Israel's sea blockade.
Both Turkey and Amnesty International have criticised Israel's plan for an enquiry into the military operation against the Freedom Flotilla, with three Israeli members joined by two international observers, Nobel Peace Prize winner David Trimble of Northern Ireland and Ken Watkin, former judge advocate general of the Canadian military.
The head of the Middle East and North Africa division of Amnesty International, Malcolm Smart, said: "The structure of the government-appointed committee brings disappointment. This was a missed opportunity." He added that
the probe lacked sufficient independence from the Government to reach meaningful conclusions and that the findings of the committee would be unusable for future legal actions in regard to the events that occurred during the flotilla raid.
Turkish Foreign Minister
Ahmet Davutoglu was quoted by Agence France Presse, "We have no trust at all that Israel, a country that has carried out such an attack on a civilian convoy in international waters, will conduct an impartial investigation.
In Ankara, ministers of the Erdogan Government clearly
agreed on three points: Israel committed a crime and must acknowledge this; Israel must apologize to both the Turkish state and its citizens; and Israel must give compensation to the families of people it killed, to the wounded citizens, and to Turkish citizens who were forcefully taken from the Flotilla and arrested. Turkey's ambassador to Israel remains in Ankara.
The Turkish-Israeli tension is causing ripples in the US, with Jewish groups debating a response. “There are lines that mustn't be crossed, and we have seen over the last weeks those lines aggressively crossed,”
said Jason Isaacson, the director of international affairs for the American Jewish Committee, and added: ”The dilemma is to honor the legacy of Turkey's hospitality and integration of its Jews in its society.”
The Jewish Telegraphic Agency also put out this "undecided" position.
The organisation said:
The fragile consensus emerging from the establishment Jewish organizational leadership is that the relationship it has cultivated over the decades with Turkey is worth preserving -- at least for now.
However, speaking to to RFE/RL's Armenian Service on Monday,
Washington Times journalist Eli Lake insisted that Turkey can no longer count on the backing of the powerful Jewish lobby in the United States in its efforts to block a congressional resolution recognizing the Armenian genocide.
He added, "One of the prizes of the Turks in their relationship with Israel was support from the American Jewish community in Washington. After the flotilla incident, I would say that that support for now has dried up."
Friday, June 25, 2010 at 9:52 
One of the organizers of an Iranian aid flotilla said Thursday that the event has been cancelled due to "Israeli threats". Nevertheless, Israel's Army Radio reported that a separate Iranian ship, carrying 60 Iranian activists, was being prepared to sail to Gaza via the Caspian Sea, which seems a rather unusual route.