RAMALLAH - Israel apologised Wednesday for disrupting the visit of Vice President Joe Biden with its announcement of 1,600 new homes in disputed, but made clear it had no intention of reversing the order that has cast a shadow over the latest US push for Mideast peace. As Biden held talks with top Palestinian leaders in the West Bank, Israeli Interior Minister Eli Yishai, whose office announced the new construction on lands Palestinians claim for a future state, said the problem was about timing, not substance. "We had no intention, no desire, to offend or taunt an important man like the vice president during his visit," Yishai told Israel Radio. "I am very sorry for the embarrassment. We need to remember that approvals are done according to law even if the timing was wrong. Next time we need to take timing into account." Biden's talks with the Palestinians on Wednesday were aimed in part to ease their doubts about the latest US peace efforts. Palestinian Prime Minister Salam Fayyad said the Israeli announcement was "damaging" and posed a "great challenge" to restarting peace talks. Palestinian negotiator Saeb Erekat said the new construction would be the main item on the Abbas-Biden agenda. "I think the Israeli government is making it almost impossible for us, the Americans and the international community, to take a one centimeter step in the direction of reviving the peace process," Erekat said.