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Edition: U.S. Article Comments (31) Slideshow Save Email Print Reprints Most Popular Most Shared U.S. setting bad example on protectionism - Sarkozy 12 Mar 2010 Venezuela's Chavez calls for internet controls 13 Mar 2010 Att'y general failed to give legal briefs to Senate 12 Mar 2010 Netanyahu voices regret in settlement row with U.S. 11:24am EDT Google "99.9 pct" sure to shut China search engine-FT 13 Mar 2010 Venezuela's Chavez calls for internet controls 13 Mar 2010 UPDATE 1-Abbott's heart valve device proves safe, effective 8:56am EDT U.S. to roll out major broadband policy 10:05am EDT Att'y general failed to give legal briefs to Senate 12 Mar 2010 Nurses' union: Care does not include sex 11 Mar 2010 Netanyahu voices regret in settlement row with U.S. Jeffrey Heller JERUSALEM Sun Mar 14, 2010 11:24am EDT Related News Israel phasing out flechette tank shells 11:16am EDT < 1 / 2 > View Full Size JERUSALEM (Reuters) - Israeli Prime Minister Benjamin Netanyahu voiced regret on Sunday for the announcement of a Jewish settlement plan that has strained ties with Washington and threatens the revival of Middle East peace talks. World | Barack Obama In his first public remarks on what Israeli commentators called his most serious crisis with Washington since taking office a year ago, he gave no sign he would meet Palestinian demands to cancel a project for 1,600 new settler homes. "I suggest not to get carried away and to calm down," Netanyahu told his cabinet, after a reprimand by U.S. Secretary of State Hillary Clinton and written statements issued by the prime minister's office that failed to calm the dispute. "There was a regrettable incident here, that occurred innocently," Netanyahu said, referring to an announcement by a government ministry during a visit last week by Vice President Joe Biden, of planned construction in an area of the West Bank that Israel has annexed to Jerusalem. The timing of the disclosure, after Palestinians agreed to indirect peace talks, embarrassed Biden and raised questions over whether Israel's settlement policy could harm U.S.-Israeli security cooperation on the question of Iran. "It was hurtful and certainly it should not have happened," Netanyahu said of the announcement by the Interior Ministry, controlled by the religious Shas party, a member of a governing coalition dominated by pro-settler parties, including his own. David Axelrod, a senior aide to President Barack Obama, told NBC's "Meet the Press" program that Netanyahu's comments in response to U.S. criticism showed "the message was received." A senior U.S. official forecast "a dicey period here in the next couple days to a couple of weeks" as Palestinians demanded reversal of the settlement plan. A U.S. envoy is due back in the region later in the week to try to get peace talks suspended since December 2008 under way. Palestinian President Mahmoud Abbas had resisted restarting negotiations without a total Israeli settlement freeze. An Abbas aide, Nabil Abu Rdainah, said Netanyahu's comments fell short of what was needed for the talks to begin. "What is required is the annulment of the Israeli decision and no return to the policy of provoking the Palestinian side," Abu Rdainah said. INSULT In unusually blunt remarks, Clinton had called Israel's behavior "insulting" after it approved the project while hosting Biden, who had focused during his visit on Washington's commitment to Israeli security and sanctions against Iran. Although Clinton stressed Washington's ties with Israel were "durable and strong," she told Netanyahu in a telephone call on Friday he must act to repair the relationship. Netanyahu said at the cabinet meeting he had appointed a team of senior officials to look into the process leading up to the settlement project announcement and "to ensure procedures will be in place to prevent these kinds of incidents." It was not immediately clear whether the inquiry would help smooth relations with Washington after the latest display of friction between Netanyahu and Obama. "In flames," read the front-page headline in Maariv, a mass circulation, mainstream Israeli newspaper, underneath a cartoon depicting Obama boiling Netanyahu in a cooking pot. Writing in the left-leaning Haaretz newspaper, commentator Aluf Benn said Netanyahu has reached "the moment of truth." He said Netanyahu must choose between political cooperation with the right and his need for U.S. support in curbing Iran's nuclear program the West says is aimed a producing nuclear weapons, an allegation Iran denies. Angering settlers and their supporters, Netanyahu announced in November a 10-month moratorium on new housing starts in West Bank settlements -- but exempted Jerusalem from the order. Washington praised the move. Palestinians fear settlements on land Israel captured in the 1967 Middle East war will deny them a viable state in the West Bank and Gaza Strip, with East Jerusalem as its capital. Israel considers all of Jerusalem its capital, a claim that is not recognized internationally. (Additional reporting by Adam Entous and Arshad Mohammed in Washington and Tom Perry in Ramallah; Editing by Charles Dick) World Barack Obama Comments See All Comments (31) | Post Comment Mar 13, 2010 11:18pm EST Hillary is more man than Obama will ever be STORY-BURN Report As Abusive Mar 13, 2010 11:23pm EST It’s time the U.S. takes away Isreal’s meal ticket. Any country that deliberately obstructs our peace efforts in the Middle East for their own selfish ends doesn’t deserve the billions of dollars in aid we send them yearly nor is it worth the lives of the American soldiers that are sacrificed for them. AIPAC and the ADL have run their hoax on the American people for too long. To continue to stand in the way of the peace process is an insult to this country and cannot be tolerated any longer. Publius1791 Report As Abusive Mar 14, 2010 12:20am EST @ Publius1791. Couldn’t have said it better myself. introspect Report As Abusive Mar 14, 2010 1:35am EST “In Washington, the Anti-Defamation League, which lobbies for Israel with U.S. lawmakers, called Clinton’s remarks on the diplomatic debacle a “gross over-reaction.” ” If the ADL does not see how the approval of these settlements would cause a serious problem for the Palestinian people, then they sadly out of touch with reality. Any rational person can see how that action is a direct affront to the building of trust between the parties, AND a slap in the face to the American people who have been working so hard to help the cause of peace in the region. This indicates that there are only two possibilities. Either: 1- The ADL is so wrapped up in its one-sided, unquestioning support of Israel no matter what, that it is blind to the harmful effects of moves such as this. Ultimately, is no help to Israel or the cause of peace it actions such as this push away the very friends who are trying to help. 2- The alternative is that the ADL, like some extremists in Israel, have absolutely no interest in peace. They are happy to continue to rely on force to maintain the status quo in the region. Unfortunately for them, either of these views leads to increased isolation of Israel, and this is not in their long term interest. jmmx Report As Abusive Mar 14, 2010 1:40am EST I can think of lots of Insults for hillary clinton!! barge Report As Abusive Mar 14, 2010 3:32am EDT State Department has taken a simple mistake – for which an apology was given and accepted and again turned it in to an excuse not to hold talks. This is the second time Hilary has made such a mistake and put the peace talks at risk. First she makes a comment about “a construction freeze” in all of the disputed territories so Abbas climbed up the tree and could not hold negotiations without looking less Palestinian than the USA. Now she has taken a clerical mistake, for which Joe Biden has accepted the apology, and turned it into a bigger mess. It was inappropriate for her to dress down Bibi 4 days after Biden had accepted the apology – and then to make it public. Heads of State only get that from other heads of state – not flunkies. Hilary has done much worse than the “couch” incident where Israel embarrassed Turkey. It was doubly inappropriate for Deputy Secretary of State Jim Steinberg to call in the Israeli Ambassador. As this is playing out the US has crystallized the Israeli public. Before Hilary made such a to do about this it worked towards peace and the Israeli public was wondering how long the government would last. Now the Israeli public is backing Bibi and is further against these talks and making concessions than ever. Thank you Hilary you have done what no one else could – get the Jews to agree. Eric.Klein Report As Abusive Mar 14, 2010 3:53am EDT Perhaps the US should consider ceasing all development in southern Texas or California so that talks between LaRaza and the administration regarding the repatriating of Mexican territory could occur. I am ashamed of our governments behavior. Israel must know that a huge majority of American Christians do not concur with this administrations stand. GregF Report As Abusive Mar 14, 2010 4:46am EDT @STORY-BURN – yes, u r right she is more of a man than Obama ‘ll ever be, that’s why the Lobby did everything do not let her get elected. Everytime she led – the Market (Wall Street)was “down”. They knew they won’t be able 2 manipulate her or scare (with their “Tea Parties” & such) CosaTiManca Report As Abusive Mar 14, 2010 4:48am EDT what charades! There are specific areas that will never be given back to the arabs- Ramat Shlomo is one of them which are contiguous parts of the Jerusalem landscape. To let enemies think they may ever occupy such strategic hills is total denial and misunderstanding of the basic facts of survival. It is a shame that the US does not understand that all areas are NOT negotiable. If the pals want another excuse not to sit at a table, they will concoct one any time. Settlements in the boondocks are the only relevant issue to the subject of freezing growth. Otherwise, Israel, please continue your much needed growth! avoice Report As Abusive See All Comments (31) Add a Comment More from Reuters Greek bailout tops EU finance ministers' agenda BRUSSELS (Reuters) - Finance ministers from countries using the euro hope to agree on Monday on a way of providing heavily indebted Greece with financial aid, despite French doubts that a deal will be reached. China's Wen pushes back against yuan rise calls Healthcare overhaul will pass: Axelrod BYD posts record Q4 profit on robust sales KKR and Warner Music eye break-up bid for EMI: report U.S. to roll out major broadband policy » More Top News "Cash for keys" to buy homes A hot new loan-selling business is freeing Americans from crushing debt and enticing mortgage investors hungry for a deal. Full Article Home loan demand nudges higher Housing Paying for the right to choose It's one thing to have to pay for extra baggage, but no fee irks airline travelers more than this. Full Article 48 hours in Caracas Lima airport lounge voted world's best life © 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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