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Despite worldwide condemnation, Prime Minister Benjamin Netanyahu has said Israel will continue with plans for settlement construction in Jerusalem.
It comes after reports that US Secretary of State Hilary Clinton demanded a project to build 1600 homes in East Jerusalem was cancelled.
Speaking in Parliament, and defying the United States, Netanyahu rejected placing any curbs on building homes.
Israel should be careful
Former US Ambassador to Israel Martin S. Indyk told Channel 2 Monday that while he didn’t agree with Israeli envoy Michael Oren’s assessment that the crisis was the worst since 1975, it was heading in that direction.
Indyk warned Israel to take more care in the way it treats its longtime ally, and said the ball was now "in [Prime Minister Binyamin] Netanyahu’s court.”
US wants Israel to cancel Jerusalem building plan
JERUSALEM — The Obama administration is demanding that Israel call off a contentious building project in east Jerusalem and make a public gesture toward the Palestinians to help defuse one of the worst U.S.-Israeli feuds in memory, officials on both sides said Monday.
But Prime Minister Benjamin Netanyahu showed little sign of yielding, saying Jewish construction in east Jerusalem "in no way" hurts Palestinians. A Jerusalem city spokesman suggested Jewish building there would continue.