Israeli government continuing West Bank construction, dovish group charges

Israel has approved the construction of almost 1,700 homes in contested territory since renewing peace talks with the Palestinians at a U.S.-hosted summit in November, an Israeli watchdog group reported Monday.

The report came as U.S. Secretary of State Condoleezza Rice wrapped up a visit to the region designed to breathe life into the talks.

Although the survey contained little new information, Peace Now said Israel was undermining negotiations by repeating one of its "worst mistakes" _ building on disputed land while holding peace talks.

The U.S. has been urging Israel to halt construction in east Jerusalem and the West Bank, areas that Israel captured in the 1967 war but are claimed by the Palestinians for a future state. Israeli construction projects in the disputed areas have sparked a series of crises in the peace negotiations, prompting the Palestinians at one point to suspend negotiations.

In its report Monday, Peace Now said Israel's Defense Ministry has approved plans to build 946 homes in the West Bank since last November's peace summit in Annapolis, Maryland. Peace Now said the government has also given final approval for at least 750 homes in east Jerusalem since talks renewed.

Israeli Prime Minister Ehud Olmert denied that West Bank building had been stepped up. "All the reports of dramatic construction projects in the (Palestinian) territories are not true, and it's not true that we're building in violation of commitments that were made," Olmert told a meeting of his Kadima Party.

Olmert also said Israel would continue to build in east Jerusalem and in heavily Jewish areas of the West Bank that Israel wants to keep in a final peace agreement.

"This is going on within the framework of negotiations, and the negotiations will continue to progress," he said.

Settler leader Pinchas Wallerstein accused Peace Now of "recycling statistics," and said nearly all of the construction in the report had been approved long ago. The government is no longer funding new building projects or issuing new building permits, Wallerstein said.

As far as a settlement freeze is concerned, "I'm sad to say the Peace Now report is wrong," he added.

At the Annapolis conference, Israel and the Palestinians agreed to base their peace talks on the 2003 "road map." The U.S.-backed peace plan calls on Israel to "freeze all settlement activity" and obligates the Palestinians to dismantle militant groups. Neither side has fully carried out its obligations.

Palestinian negotiator Saeb Erekat said officials presented information on Israeli settlement activity to Rice. "President (Mahmoud) Abbas told Rice this is the most dangerous obstacle to peace," he said.

Speaking Sunday to reporters, Rice said Israel's commitment on the matter was integral to progress in the talks.

"I've raised this issue, that Israel has a road map obligation here that is essential," Rice said. "What's very important is that the reason that obligation is there is that there cannot be anything that prejudges a final status agreement. And that's why people concern themselves with this particular obligation. And yes, we've talked about it."

Lt. Gen. William Fraser III, the retired U.S. military man appointed by Rice to monitor implementation of the road map, is expected in the region around April 11, U.S. officials said Monday.

Israeli government spokesman Mark Regev said Israel remains committed to the talks and that the government never promised a total settlement freeze.

It says it is not building any new settlements and has halted outward expansion of existing settlements. However, it continues to allow construction in major settlement blocs and east Jerusalem _ areas it expects to keep under a final peace agreement.

Israel does not consider construction in east Jerusalem to be settlement activity because it annexed the sector after the 1967 war. The Palestinians and international community do.