JERUSALEM, 11 March 2008 — Jerusalem authorities said yesterday they planned to build a new Jewish settlement in the annexed eastern part of the city, a move that could further hamper efforts to restart faltering peace talks.

The project entails construction of 400 homes in mainly Arab East Jerusalem but is subject to approval from the regional council for urban planning, said Yossi Gottesman, a spokesman for the mayor’s office.

“It is a scandalous decision,” charged Yariv Oppenheimer of the anti-settlement movement Peace Now, warning that it would “affect negotiations with Palestinians even more.” Israel occupied and annexed east Jerusalem following the 1967 war and declared it its “eternal undivided” capital. Palestinians hope to make the city the capital of their promised state.

The international community has never recognized Israel’s claim to east Jerusalem and Palestinians have demanded a halt to settlement activity in all areas occupied in the 1967 war. Israel also announced at the weekend plans to build hundreds of new housing units in a settlement in the occupied West Bank. The decision drew criticism from Egypt yesterday with Foreign Ministry spokesman Hossam Zaki charging that it “flies in the face of political dialogue between Palestinians and Israelis.”

“The expansion of Israeli settlements, which is contrary to international law and UN resolutions, undermines the opportunities for achieving a just peace,” Zaki said.

Not Helpful

US Secretary of State Condoleezza Rice began talks in Washington yesterday with her Israeli counterpart after a US official said Israel’s announcement of new settlements is not helpful to the peace process.

Sitting next to Israeli Foreign Minister Tzipi Livni, Rice urged Israelis and Palestinians to honor their obligations under the 2003 road map for peace, which calls for a settlement freeze and an end to Palestinian violence.

But Rice did not refer specifically to Israel’s announcement at the weekend that it will build hundreds of new housing units in a settlement in the occupied West Bank.

Bounties on 3 Israel Leaders

In Tehran, Iranian hard-line students have offered rewards totaling a million dollars for the “execution” of three Israeli military leaders over deadly strikes on Gaza, the student news agency ISNA reported yesterday.

The bounties are on the heads of Israeli Defense Minister Ehud Barak, Mossad spy agency director Meir Dagan and military intelligence chief Amos Yadlin. The rewards were announced by the Justice Seeking Students Group on Sunday. The bounty for Barak is set at $400,000 while those for Dagan and Yadlin are $300,000 each, the report said. It is not clear where the money is coming from.