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While the US State Department publicly insisted the official Obama Administration on the Israeli settlements had not changed, privately diplomats are saying that the adminstration has done a virtual 180, backing off pretty much all its demands with respect to Israel’s settlement activity.
At this point, the US had agreed to completely abandon complaints over Israeli construction in East Jerusalem, which Israel occupied in 1967. Though the US will not publicly endorse the continued construction it will no longer ask Israel to freeze them.