(Reuters) – Secretary of State Hillary Clinton said on Wednesday Israel’s plan to go ahead with more settlement building in the West Bank was counterproductive to peace negotiations but voiced hope that a deal was still possible.
One day before she is due to meet visiting Israeli Prime Minister Benjamin Netanyahu in New York, Clinton announced the United States had given an additional $150 million to the Palestinian Authority as it prepares to assume full statehood under a potential future peace deal. [Emphasis CAJ]
Clinton faces the tough task of reviving Middle East peace talks that began in Washington on September 2 but were suspended by the Palestinians three weeks later when Netanyahu refused to extend a 10-month limited building freeze in West Bank settlements.
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Prime Minister Netanyahu’s reply to pressure from Washington: “Jerusalem is not a settlement, it is the capitol of Israel.”