Correlated fractal percolation and the Palis conjecture

Let F1 and F2 be independent copies of correlated fractal percolation, with Hausdorff dimensions dimH(F1) and dimH(F2). Consider the following question: does dimH(F1)+dimH(F2)>1 imply that their algebraic difference F1-F2 will contain an interval? The well known Palis conjecture states that `generically' this should be true. Recent work by Kuijvenhoven and the first author (arXiv:0811.0525) on random Cantor sets can not answer this question as their condition on the joint survival distributions of the generating process is not satisfied by correlated fractal percolation. We develop a new condition which permits us to solve the problem, and we prove that the condition of (arXiv:0811.0525) implies our condition. Independently of this we give a solution to the critical case, yielding that a strong version of the Palis conjecture holds for fractal percolation and correlated fractal percolation: the algebraic difference contains an interval almost surely if and only if the sum of the Hausdorff dimensions of the random Cantor sets exceeds one.