TEL AVIV - Israel insisted Friday it would not change its policy of building homes in East Jerusalem, keeping the Jewish state at odds with Washington on how to renew stalled peace talks with Palestinians. The statement on Jerusalem came as Prime Minister Benjamin Netanyahu convened senior cabinet ministers to consider confidence building steps for reviving negotiations, as proposed by US officials while Netanyahu was in Washington this week. "Israeli construction policy in Jerusalem has remained the same for 42 years and isn't changing," a written statement from Netanyahu's spokesman, Nir Hefez, said, suggesting Israeli cabinet ministers would not budge on that particular policy. The Obama administration has been pressing Israel to halt settlement construction in East Jerusalem, an issue that created new friction this month when a plan to build 1,600 more housing units was published while Vice President Joe Biden was visiting. Sparring over settlements risks jeopardising Israel's vital security ties with the United States, its biggest ally. However, Netanyahu has to balance these concerns with the possibility that his pro-settler government may fall apart should he bow to US demands.
