Israel confirms more East Jerusalem buildings

Undeterred by turbulence in its ties with the United States and Britain, Israel yesterday confirmed plans to expand the Jewish presence in occupied East Jerusalem, with more buildings freshly approved.

In a move sure to anger Palestinians and frustrate Western proponents of a freeze on settlement construction, a city official said approval was given to develop a flashpoint neighbourhood from which Palestinians were evicted last year.

Word of the move came as Prime Minister Benjamin Netanyahu completed an unusually low-profile meeting in Washington with US President Barack Obama for fence-mending talks, after their open spat over East Jerusalem earlier this month.

Mr Netanyahu says he regretted the bad timing of an announcement of East Jerusalem building plans during the visit of US Vice President Joe Biden two weeks ago, which Washington called "insulting."

But on Monday he insisted before an audience of influential American Jews that "Jerusalem is our capital" and building will continue there as Israel sees fit.

His defiant assertion coincided with a public slap to Israel from Britain, which announced it was expelling an Israeli diplomat over the forgery of British passports used by the suspected killers of a Hamas commander in Dubai.

Israel said it regretted Britain's decision but commentators yesterday predicted no meaningful damage to bilateral ties.

Irish, French, German and Australian passports were also forged by the assassination squad, and their authorities were expected to examine Britain's evidence implicating Israel.

In a comparatively rare public complaint, Saudi Arabia yesterday asked major powers involved in Middle East peacemaking for "clarifications about Israel's arrogant policy and its insistence on defying international will."

Israeli media said Mr Netanyahu was surprised by news of the latest plans to build apartments in the Sheikh Jarrah district, which has become a focal point for anti-settler demonstrations since Palestinian residents were evicted.

Chief Palestinian negotiator Saeb Erekat said it was "part of Israel's attempt to forcibly end any Palestinian presence in East Jerusalem, and to foreclose any hope of reaching agreement on the core issue of Jerusalem in line with international law."

"There is growing international frustration with Israel over the actions and decisions it is taking," he said.

"Israel is digging itself into a hole that it will have to climb out of if it is serious about peace."

Speaking on Army Radio, Jerusalem councillor Elisha Peleg said the plan had been advancing for months. The latest move was just "a technical step" on the way to approving 100 homes.