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After GOP victory, emboldened Israel declares new building in East Jerusalem

Israel publicized plans to build more than 1,300 new homes in East Jerusalem, angering Palestinians and disappointing the US on the eve of a Netanyahu visit.

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SPECIAL REPORT: How Israeli-Palestinian battle for Jerusalem plays out in one neighborhood

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State Department Spokesman PJ Crowley said the US is "deeply disappointed'' about the publicized building plans and that it is "counter-productive'' to efforts to restart negotiations.

Since Israel embarrassed Mr. Biden in March, causing a major diplomatic stir, Israeli authorities had imposed a de-facto freeze on Jerusalem building in parallel with the 10-month moratorium on Israeli settlements in the West Bank that ended Sept. 26. The publication of plans to build 1,025 units in the East Jerusalem neighborhood of Har Homa and another 320 in the northwestern neighborhood of Ramot marked a break in that policy.

An Israeli spokesman denied the move would hurt the peace process.

"In every peace plan that has been put on the table over the last 20 years, the Jewish neighborhoods in Jerusalem remain part of Israel,'' says an Israeli official who declined to be identified. "Building in these new neighborhoods in no way contradicts the desire to move a way in peace toward a two-state solution."

Also on the US-Israeli agenda ... Iran

After meeting with Biden Sunday on the sidelines of the annual convention of American Jewish community federations in New Orleans, Netanyahu is now scheduled to meet with Secretary of State Hillary Clinton in New York.

Netanyahu and the Obama administration are looking to resolve differences over settlement building in the West Bank, which has prompted the Palestinians to boycott negotiations. While the US has called for Israel to extend the 10-month moratorium on building starts, Netanyahu has demurred so far.

The two sides will also be discussing a strategy on Iran.

Yoram Ettinger, a former Israeli attaché in Washington who supports a hard line on concessions to the Palestinians, says if Netanyahu meets with Republican Congress members it might be a sign that he plans to "leverage" the new political reality.

"Hopefully this will prompt Netanyahu to revert back to his classic self, and the statement on Iran might be a reflection of that," he says.

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