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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Att'y general failed to give legal briefs to Senate 12 Mar 2010 U.S. setting bad example on protectionism - Sarkozy 12 Mar 2010 UPDATE 1-US court rules again against vaccine-autism claims 12 Mar 2010 U.S. FCC releases Internet speed test tool 11 Mar 2010 Second U.S. woman probed in plot to kill Swede: report 12 Mar 2010 UPDATE 1-US court rules again against vaccine-autism claims 12 Mar 2010 Att'y general failed to give legal briefs to Senate 12 Mar 2010 Nurses' union: Care does not include sex 11 Mar 2010 Sushi chef, restaurant charged with serving endangered whale 11 Mar 2010 Could Lehman be Ernst & Young's Enron? 12 Mar 2010 Netanyahu's position is "perilous": U.S. official Adam Entous WASHINGTON Sat Mar 13, 2010 1:49am EST WASHINGTON (Reuters) - Israeli Prime Minister Benjamin Netanyahu's political standing is "perilous" because of divisions within his coalition over efforts to pursue peace with the Palestinians, a senior U.S. official said on Friday. World Israel's announcement this week, during a visit by U.S. Vice President Joe Biden, of plans to build 1,600 settler homes in an area of the occupied West Bank it annexed to Jerusalem, cast a shadow over U.S. efforts to relaunch Middle East peacemaking. The decision was a blow to Biden's mission and sent him and other top American officials scrambling to shore up Palestinian and Arab support for launching U.S.-led "proximity" talks as early as next week, although officials acknowledged there could be a further delay. Secretary of State Hillary Clinton telephoned Netanyahu to tell him the settlements announcement was a "deeply negative signal about Israel's approach to the bilateral relationship ... and had undermined trust and confidence in the peace process," a State Department spokesman said on Friday. "The Israelis know the only way to stay on the positive side of the ledger -- internationally and with us -- is to not have them recurring," the senior Obama administration official said of announcements about expanding settlements. The official, speaking on condition of anonymity because of the sensitivity of the matter, predicted "a dicey period here in the next couple days to a couple of weeks" as Washington tries to get the indirect talks launched. Entering negotiations with the Palestinians on so-called core issues including statehood borders and the fate of Jerusalem could spark a revolt from Netanyahu's far-right coalition partners and destabilize his government. The senior administration official termed Netanyahu's political position as "perilous" because of the divisions. Right-wing parties oppose peace moves, including a full settlement freeze, sought by the Palestinians and the United States. Palestinian President Mahmoud Abbas, who holds sway in the Israeli-occupied West Bank, has likewise been seriously weakened by his rivalry with Hamas Islamists, who control the Gaza Strip bordering Egypt. The Obama administration believes the proximity talks may be the only way in the foreseeable future to ease Israel back to the negotiating table without triggering a political crisis. Under the proposed format for the talks, Netanyahu could relay his positions on sensitive issues to a U.S. mediator, George Mitchell, instead of to the Palestinians directly. But Israeli officials say Netanyahu is resisting the inclusion of core issues in the proximity phase, casting doubt on the scope of the talks. The senior official said Netanyahu's assurances the 1,600 houses would not be built for at least a year were meant to give Abbas the political cover he needed to move forward as planned. "Nothing is going to go up anytime soon, this was a year away at a minimum, which is another way of saying, 'Hey look, I'm not building anything. Nothing's going to be built here,'" the official said of the private messages relayed to Abbas by the vice president. By vouching for Netanyahu, Abbas was "able to say with certainty to his team, 'Look, this is a fight about something in the future and the way to deal with that is to get into talks,'" the official said. (Editing by Peter Cooney) World More from Reuters Cheap cigars, politics and the Volcker Rule He relishes cheap cigars, would rather take a bus than a taxi, and recently eloped. Meet Paul Volcker, the former Federal Reserve Chairman no one expected to be driving policy in the Obama administration. Full Article Regulatory News The big guns fire back The Wall Street behemoths that came close to collapse in the financial crisis are back and pushing aside the boutiques that made a killing during the turmoil. Full Article BofA chief must now walk the walk "The Big Short": An unsettling read Live Chat: Michael Lewis answers your questions on March 16th Banks Reuters Breakingviews: Repo 105: Lehman's poison The autopsy of Lehman Brothers appears to have found many causes of death, including balance-sheet shenanigans, hubris, and a poison called Repo 105. Commentary Accounting gimmicks in demise Graphic: A look at "Repo 105" Buffett kept distance from Lehman Regulatory News © 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.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report 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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