Israel has annexed East Jerusalem. I presume Netanyahu considers settlements in East Jerusalem to be in Israel Proper, which is why he won't freeze anything. Giving up 1,027 prisoners is a heck of a lot easier than giving away the Wailing Wall.... Anyway, Abbas' alternate version of history was happily run by the Times, so I wouldn't listen to them.
Army: Blast in Korean DMZ wounds two South Korean soldiers (Reuters)
from the article: NY Times: Shalit deal shows Netanyahu can reach Mideast peace, but won't