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Edition: U.S. Article Comments (15) Save Email Print Reprints Most Popular Most Shared British pair faces jail time in Dubai over kiss 14 Mar 2010 Israeli envoy sees "historic crisis" with U.S.: report 6:59am EDT U.S. says no explanation yet for Prius California claim 7:06am EDT Venezuela's Chavez calls for internet controls 13 Mar 2010 U.S. to roll out major broadband policy 14 Mar 2010 British pair faces jail time in Dubai over kiss 14 Mar 2010 UPDATE 2-Medtronic atrial fibrillation system shines in study 11:42am EDT U.S. to roll out major broadband policy 14 Mar 2010 Nurses' union: Care does not include sex 11 Mar 2010 People leave unique trail of germs 4:19pm EDT Netanyahu defies U.S. over Jerusalem settlement Jeffrey Heller JERUSALEM Mon Mar 15, 2010 2:34pm EDT Related News TIMELINE: U.S.-Israeli relations since 1948 2:34pm EDT Palestinian labourers work on the roof of a house under construction in Ramat Shlomo, a religious Jewish settlement in an area of the West Bank annexed to Jerusalem by Israel, March 10, 2010. Credit: Reuters/Ronen Zvulun JERUSALEM (Reuters) - Prime Minister Benjamin Netanyahu on Monday rejected any curbs on Jewish settlement in and around Jerusalem, defying Washington in Israel's deepening crisis with U.S. President Barack Obama's administration. World "For the past 40 years, no Israeli government ever limited construction in the neighborhoods of Jerusalem," he said in a speech in parliament, citing areas in the West Bank that Israel captured in 1967 and unilaterally annexed to the city. The United States has condemned Israel's plan to build 1,600 new homes for Jews in Ramat Shlomo, a religious settlement within the Israeli-designated borders of Jerusalem, whose future status is at the heart of the Middle East conflict. Israel's announcement of the project during a visit last week by U.S. Vice President Joe Biden embarrassed the White House. U.S. Secretary of State Hillary Clinton, in unusually blunt remarks, called it an insult. The Palestinians, who had just agreed to begin indirect peace talks under U.S. mediation, have said they will not go ahead unless the plan is scrapped. An Israeli official said U.S. Middle East envoy George Mitchell planned to return to Israel on Tuesday for talks with Israeli and Palestinian leaders on getting the talks under way. In parliament, Netanyahu, who heads a coalition that includes pro-settler parties, including his own, said there was nearly total consensus in Israel that annexed areas of Jerusalem would be part of the Jewish state in any future peace deal. Israeli media said Clinton had demanded a reversal of the decision to build in Ramat Shlomo. Netanyahu's comments appeared to signal to Washington that he believed he had political backing at home to withstand U.S. pressure. MORATORIUM Netanyahu imposed a 10-month moratorium on new housing starts in West Bank settlements in November, but excluded Jerusalem. The Obama administration, which had earlier pressed for a complete freeze, welcomed the move at the time, but the Palestinians deemed it inadequate. On Sunday, Netanyahu tried to play down what his envoy to Washington was reported to have described as a "crisis of historic proportions", voicing regret at a cabinet meeting for the timing of the Ramat Shlomo announcement. The rift with Washington has raised concern in Israel that security cooperation with the United States in confronting a potentially nuclear-armed Iran might be harmed. In the West Bank city of Ramallah, Nabil Abu Rdainah, an aide to Palestinian President Mahmoud Abbas, pledged again not to return to peace talks until settlement was halted. Israeli troops injured at least seven Palestinians at a checkpoint north of Ramallah during a rock-throwing protest against the Ramat Shlomo project and Israel's consecration of an ancient synagogue in the Jewish Quarter of Jerusalem's Old City, a tinderbox site in the conflict. Palestinians said the soldiers had fired live rounds but the Israeli military denied this, saying crowd-dispersal measures had been employed. Tensions between Palestinians and Israel, which has occupied the West Bank since 1967, have escalated in recent weeks following an Israeli government decision to include West Bank religious sites in a Jewish national heritage plan. Citing biblical and historical links, Israel sees all of Jerusalem as its capital, a claim that is not recognized internationally. The Palestinians want East Jerusalem to be the capital of a future state in the West Bank and Gaza Strip. Some 500,000 Jews live in the West Bank and East Jerusalem, and about 2.5 million Palestinians. (Additional reporting by Ari Rabinovitch in Jerusalem and Mohammed Assadi in Ramallah; Editing by Kevin Liffey) World Comments See All Comments (15) | Post Comment Mar 15, 2010 1:05pm EDT Israel does not want peace or any permanent boundary with Palestinians as they think that it is cheaper in the long run to keep the status quo and continue annexing new land from them. They are no friends of the US or any other country, and it doesn’t seem like they are concerned about and bound by any moral considerations regarding their actions in occupied territories. They have harmed the interests of the US more than any other foreign country or group of people did in the history, and they contiune to do so with great impunity. We have to disassociate our foreign policy from Israel’s actions otherwise our words to the Middle Eastern countries will continue to have no meaning. Sabri Report As Abusive Mar 15, 2010 1:18pm EDT I would challenge anyone to do some research on your own to determine which side has been more willing to pursue peace and which side tends to be more violent. Enough said. jmreyesiii Report As Abusive Mar 15, 2010 1:42pm EDT Violence can be provoked. Building settlements in Palestinians areas of Jerusalem or in areas that are predominantly occupied by Palestinians does not demonstrate good faith in establishing a Palestinian state. Enough said. breezinthru Report As Abusive Mar 15, 2010 1:43pm EDT It’s time the US uses their money to influence the actions of Israel to help push our foreign interests. In 2010, we will provide $2.775 billion in security aid to Israel and with it they will continue policies to decrease regional stability and work directly against US interests. TMP34 Report As Abusive Mar 15, 2010 1:47pm EDT People don’t get it. The Israeli government wants peace, but only after they have killed all their enemies – Annihilated all those Palestinians who by the way also have a historical link to that land. They just don’t happen to have a special relationship, which is more like bridle, with the US. In fact all this is part of an effort to entice the Palestinians to shoot those ineffective missiles into Israel. Then there will be a threefold retaliation (already scheduled for this summer). At this rate they are hopping there would no Palestinians and perhaps peace by 2020, assuming the US war with Iran ends by then. Tical Report As Abusive Mar 15, 2010 1:55pm EDT Let’s be careful and not just blame Netanyahu. He was elected, a known hardliner, and a core chunk of Israeli voters will have protests if he halts the construction. This is not a problem of the leadership, it is a problem of the common Israeli citizen’s attitude. THeRmoNukE Report As Abusive Mar 15, 2010 2:27pm EDT When, oh when is the US going to cut off israel’s welfare checks??? That is the only way to get their attention. They made their bed. Let them lie in it. It’s their problem, not ours. The jews are our problem. Cut them off, & throw them out.Their only loyalty is to each other. Born2Late Report As Abusive Mar 15, 2010 2:38pm EDT Let’s just think outside this bloody box that humanity has been in for the last 2,500 years. Imagine Jeruslem being declared an “international city” where all the descendents of Abraham could live in peace, security, and prosperity. boomer12 Report As Abusive Mar 15, 2010 2:52pm EDT Why is it possible for Arab/Palestinians to live freely in Israel, but Jewish/Zionists cannot hope to live in “Palestine”? Straining at bugs (i.e. future building projects) strains the bigger prospects of pursuing living in peace without fear of military attacks from either side. DrDowning Report As Abusive See All Comments (15) Add a Comment More from Reuters Toyota says no evidence "runaway" Prius happened SAN DIEGO (Reuters) - Toyota Motor Corp said on Monday it had found no evidence to support the driver's version of a widely publicized "runaway" Prius episode a week ago, suggesting that authorities examine whether the incident happened as reported to police. Dodd boosts Fed in new financial reforms House panel takes step on final healthcare bill | Video Lehman plans to end bankruptcy, create new company Ex-NY bank president first accused of TARP fraud Credit card data signals consumer stress easing » More Top News Dodd: New powers for the Fed The Federal Reserve would wield new powers and keep much of its authority over banks under a new financial reform bill proposal. Full Article Will Lehman be Ernst & Young's Enron? Report could lead to criminal charges Banks Coming Up Tuesday, March 16: A live chat with Michael Lewis Have a question for Michael Lewis? Submit them here. The author of "The Blind Side" and "The Liar's Poker" will be joining us March 16th to talk about his new book. Live Coverage Felix Salmon: "The Big Short" Rolfe Winkler: Lewis on his book Economy © 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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