The Palestinians prefer the "Peace Process" whereby the foreign aid keeps flowing as opposed to an actual peace which would cause their cash cow to dry up. Peace offers them nothing that can make up for the loss of this foreign revenue which supports their elites. Israel is content to accommodate their position.
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Attempted stabbing reported near Hebron's Tomb of the Patriarchs; assailant shot at scene (Haaretz)
from the article: Akiva Eldar / What would Netanyahu do without Peres?