"According to a senior Palestinian source close to President Mahmoud Abbas' people, Molho said that if it were discovered that he had taken part in even a smidgen of negotiations over Jerusalem, the government would crumble. There are two possibilities. Either Netanyahu really is afraid of Foreign Minister Avigdor Lieberman, or he is using his loudmouthed colleague as an alibi for refusal." The third possibility is that the "senior Palestinian source" is lying through his teeth. Not that THAT would EVER happen of course!
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Initial report of stabbing attack in South Hebron Hills (Haaretz)
from the article: New Palestinian peace plan may force Israel into action