Israel unveils plans for new settlement

The Israeli housing ministry has unveiled plans for the construction of 238 new homes for Jewish settlers in annexed Arab east Jerusalem, reports said today, in a move likely to complicate US attempts to revive the moribund peace process.

The move to build the new housing units in the settlements of Pisgat Zeev and Ramot, was approved late yesterday by Israeli prime minister Benjamin Netanyahu, the Ynet news website said.

Peace talks between Israel and the Palestinians are facing imminent collapse in the face of a row about settlement building on occupied land, which restarted on September 26 after temporary restrictions on building expired.

Although the 10-month freeze did not cover construction in east Jerusalem, Mr Netanyahu had quietly avoided signing off on any such projects in order to avoid the political fallout, Ynet said.