InfoAnda - Settlements seen clouding Netanyahu Europe trip

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My Profile Top News Reuters top ten news stories delivered to your inbox each day. 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On the eve of the visit, Peace Now, an Israeli group opposed to Jewish settlements on Palestinian territory, said on Sunday that despite a government moratorium announced last week on approving new housing in the West Bank enclaves, more than 40,000 more homes could be built under plans already ratified. Netanyahu flies on Monday to London, where he plans to meet British Prime Minister Gordon Brown on Tuesday and U.S. President Barack Obama's Middle East envoy, George Mitchell on Wednesday. Mitchell has been trying to reach an agreement with Israel on a settlement freeze Obama has demanded in accordance with a 2003 peace "road map" that also calls on the Palestinians to rein in militants. The issue has opened the widest rift in Israeli-U.S. relations in a decade. Foreign Minister Avigdor Lieberman said on Sunday Israel was making a "sincere and serious effort" to obtain what he called a "package of understandings" with Washington on the settlements but a deal did not seem imminent. The four-day trip includes a stop in Berlin, where Netanyahu will meet German Chancellor Angela Merkel on Thursday. Like Brown, she has been critical of Israel's settlement policy. Palestinian President Mahmoud Abbas has made a resumption of peace talks with Israel, suspended since December, conditional on a settlement freeze. Some 500,000 Jews live in the West Bank and Arab East Jerusalem, territory Israel captured in a 1967 war and also home to 2.5 million Palestinians. Palestinians want to establish a state in the West Bank and Gaza Strip, with its capital in Jerusalem. WIDE GAP Israeli media reports suggested a wide gap remained between Israel and Washington, with Netanyahu keen to limit any settlement freeze to a six-month period and continue projects already under way. The United States, the reports said, was seeking at least a two-year suspension. Netanyahu has also sought U.S. assurances that a settlement deal would be accompanied by initial steps by Arab countries to normalize ties with Israel. "We continue to work to try and find the common ground we seek with the Americans. We are not there, but we are getting close," an Israeli official said ahead of Netanyahu's trip. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: BAY STREET-Recession may start wearing on Canada's banks Also on Reuters Obama to raise 10-year deficit to $9 trillion German politicians blast GM for delaying Opel deal Oracle cuts CEO's base salary to $1 More International News Afghan challenger says election "widely rigged" Rival Koreas meet ahead of state funeral Pakistan Taliban name new leader but doubts remain Proud Scots feel heat over Libyan bomber's release Greek wildfire near Athens spreads, thousands flee More International News... 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