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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared UPDATE 1-Volcanic ash relentless as tremors rock Iceland 18 Apr 2010 Iceland volcano sends new tremors, lower ash cloud 8:59am EDT TAKE-A-LOOK-Goldman Sachs faces fraud charges 10:16am EDT Airlines press to reopen European airspace 11:44am EDT U.S. considers options to curb Iran's nuclear program 18 Apr 2010 Day care sends sick kids home unnecessarily: study 1:12am EDT Airlines press to reopen European airspace 11:41am EDT Majority of Americans distrust the government 9:51am EDT UPDATE 1-Volcanic ash relentless as tremors rock Iceland 18 Apr 2010 Factbox: European airports and airspace closed by ash cloud 11:32am EDT Israel's Barak concerned by rift with U.S. Jeffrey Heller JERUSALEM Mon Apr 19, 2010 9:57am EDT Related News No more bets in Middle East standoff 6:29am EDT Israeli military personnel observe two minutes of silence during the ceremony marking Memorial Day at the Western Wall in Jerusalem's Old City, April 18, 2010. Credit: Reuters/Ronen Zvulun JERUSALEM (Reuters) - Israeli Defense Minister Ehud Barak voiced concern on Monday over a deep rift with the United States over settlement policy and said Israel should do more to try to achieve peace with the Palestinians. World "The alienation that is developing with the United States is not good for Israel," said Barak, head of the center-left Labour Party in right-wing Prime Minister Benjamin Netanyahu's governing coalition. In an interview with Israel Radio on the country's annual memorial day for its soldiers, Barak called for a "far-reaching Israeli diplomatic initiative" on peace, including talks with the Palestinians on core issues of the Middle East conflict. "We have strong ties with the United States, a bond, long-term friendship and strategic partnership. We receive three billion dollars from them each year, we get the best planes in the world from them," he said. "For all these reasons we must act to change things," Barak said, while voicing doubts Netanyahu would soon enjoy the same warm ties with the White House as his predecessors did when President George W. Bush was in office. In separate remarks at a memorial ceremony, Netanyahu spoke in broad terms of Israel's approach to peacemaking. "One of our hands is stretched out in peace to all our neighbors who desire peace. The other hand grasps the sword of David to defend our people against those who wish us dead," Netanyahu said, invoking the Biblical warrior king of Israel. COALITION BUILDING With Netanyahu and U.S. President Barack Obama sharply at odds over settlement policy in occupied areas Palestinians want for a state, Barak held out the prospect of reshaping Israel's government so that it could make bold land-for-peace moves. He gave no specifics but political commentators have raised the possibility of bringing in former Foreign Minister Tzipi Livni's centrist Kadima party to keep Netanyahu's coalition in power if pro-settler factions decide to pull out. "With a broad readiness to go for a (peace) agreement, Israeli governments have overcome many obstacles in the daily discourse with the Americans about building in this or that settlement or a Jerusalem neighborhood," Barak said about long-standing differences with Washington over the issue. The Obama administration responded angrily last month when Israel announced a project, during a visit by U.S. Vice President Joe Biden, to build 1,600 more homes for Jews in a part of the occupied West Bank that it annexed to Jerusalem. The Palestinians subsequently canceled plans to enter into U.S.-mediated, indirect talks with Israel, and Netanyahu has yet to respond to a U.S. list of steps that Washington wants him to take to coax them back to the negotiating table. Political sources in Israel said Washington proposed 11 such "confidence-building" measures that are thought to include freezing Israeli construction in East Jerusalem, captured by Israel along with the West Bank in a 1967 war. The Palestinians want East Jerusalem as the capital of the state they intend to establish in the West Bank and the Gaza Strip. They say settlements could deny them a viable state. The political sources said Netanyahu, who has pledged not to place curbs on building homes for Israelis in and around East Jerusalem was unlikely to agree in full to Washington's list. To do so, the sources said, could cause his coalition to disintegrate, and continued friction with Obama could be a price he would be willing to pay to remain at the helm. (Additional reporting by Ori Lewis; Editing by Jon Hemming) World More from Reuters Airlines press to reopen European airspace PARIS (Reuters) - Airline industry group IATA called on Monday for steps to reopen European airspace shut down by a volcanic ash cloud and the European Commission said it may approve compensation for airlines losing $250 million a day. Toyota to pay $16.4 million U.S. fine In Asia, Goldman clients stay loyal for now | Video Al Qaeda's two top Iraq leaders killed in raid UK airspace to start reopening on Tuesday | Video Majority of Americans distrust the government » More Top News How bad can it get for Goldman? Goldman Sachs faces fraud charges for the first time in its history, setting the stage for the Wall Street powerhouse's biggest-ever showdown with the government. Full Article The new tougher, harsher SEC Felix Salmon: Time for contrition Goldman says charges are unfounded Corporate Crime Reuters Breakingviews: Goldman clients: Victims or fools The SEC's fraud charges against Goldman hinge on whether the investors who lost $1 billion by buying a fearfully complex product were fools or victims. Commentary Goldman fraud case hits stocks Goldman clients stay loyal for now Goldman Sachs © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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