Next door, in the West Bank, some Palestinians are living the high life in Ramallah.
Settler extremists in the West Bank have torched Palestinian fields and attacked Palestinian cars with rocks.
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The power base for Abbas, a U.S. ally, is anchored firmly in the West Bank.
At first, Israeli police denied that stones had caused the car crash in the West Bank.
But many of Turkey's complaints, such as over settlement-building in the West Bank, are hardly controversial.
Obama stressed the challenges for peace posed by Jewish settlements in the West Bank.
His Fatah movement, based in the West Bank, is deeply split from Hamas, which governs Gaza.
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Benny Gantz convened top military officials Saturday night to discuss escalating tensions in the West Bank.
He came with his brother to work in the West Bank a few months ago.
At Birzeit University in the West Bank, political science students are discussing the implications.
In Hebron, also in the West Bank, an entrepreneur has opened the city's first luxury hotel.
He will spend two days in Israel and a just a few hours in the West Bank.
President Bush went to Muqata'a, the headquarters of the Palestinian Authority in Ramallah in the West Bank.
But this is no longer how younger Fatah activists in the West Bank and Gaza see things.
But even in the West Bank many Palestinians do not share the new mood of cautious optimism.
Barack Obama has given up trying to force Mr Netanyahu to halt settlement-building in the West Bank.
Tensions have risen in the West Bank following the death from cancer of a Palestinian jailed in Israel.
Israeli forces in the West Bank have arrested at least 20 members of the Palestinian militant group Hamas.
Palestinian officials want all settlement activity in the West Bank to stop before they return to negotiations with Israel.
But Blair's mandate is very limited right now to trying to improve the Palestinian economy in the West Bank.
He plans to meet Friday with Prime Minister Benjamin Netanyahu before talking with Palestinian leaders in the West Bank.
And, Bethlehem apart, business was much as usual in the West Bank too.
This follows the lines of Mr Mofaz's initial policy in the West Bank, when he was army chief of staff.
Mr Obama also briefly visited Ramallah in the West Bank to meet Mahmoud Abbas, the president of the Palestinian Authority.
Egypt, Israel, and Jordan will agree on the modalities for establishing elected self-governing authority in the West Bank and Gaza.
In a recent interview with CNN in the West Bank, Burnat said his son has lost much of his innocence.
Powell said a reduction of violence in the Middle East would boost economic activity in the West Bank and Gaza.
This year's festival also included one event in Ramallah in the West Bank and one in Cairo, Egypt, on May 11.
Later in the day he is due to meet with Palestinian President Mahmoud Abbas in the West Bank city of Ramallah.
Sheik Jamal Tawil, 40, is the imam of the Grand Mosque in Beituniya, a district of Ramallah in the West Bank.
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