Israel Analysis: The Expansion of Construction in Jerusalem

Although Israel has not approved any new housing plans, the building of hundreds of apartments that were previously approved has proceeded since the crisis over Ramat Shlomo erupted in March.

Cabinet Secretary Zvi Hauser said on Monday that construction of new housing for Jews in east Jerusalem will press forward. He told Army Radio:

Middle East Inside Line: First Indirect Israel-Palestine Talks; Israel Warns Iran; West Jerusalem’s Economic Win

Building is expected to begin soon in Har Homa....and Neve Yaakov, where (construction) bids have been issued. Building in Jerusalem is continuing according to its regular pace.

Israeli Cabinet Minister Dan Meridor said Israel could not accept a "discriminatory" policy that barred Jews from living in certain parts of the city. But he said "the policy of the government will try to be wise".

On Tuesday, in a telephone conversation with Palestinian Authority leader Mahmoud Abbas, President Barack Obama pledged his commitment to the establishment of a sovereign Palestinian state and vowed to hold both Israel and the Palestinians accountable if either side tookk actions that "undermine trust" during U.S.-mediated talks.

Public Security Minister Yitzhak Aharonovitch on Wednesday said that Israel will demolish Palestinian homes in East Jerusalem in the coming days despite the renewal of indirect peace talks and added, "As of right now, there is no directive for police not to implement the demolition orders."

In a speech to mark Jerusalem Day, Prime Minister Benjamin Netanyahu vowed to continue Israeli construction across the city. He said, "The struggle for Jerusalem is a struggle for truth." Jerusalem Mayor Nir Barkat added:

We will continue to build in all parts of Jerusalem. The promise of a future Jerusalem with a Jewish majority is a strategic mission for all of us.

Later, Netanyahu said Israel plans to prioritize Jerusalem over other areas. He continued:

Jerusalem" and its alternative Hebrew name "Zion" appear 850 times in the Old Testament, Judaism's core canon. As to how many times Jerusalem is mentioned in the holy scriptures of other faiths, I recommend you check.

There is no undercutting, nor do I intend to undercut, the connection of others to Jerusalem. But I do confront the attempt to undercut and warp or obfuscate the unique connection that we, the people of Israel, have to the capital of Israel.

Middle East Inside Line: First Indirect Israel-Palestine Talks; Israel Warns Iran; West Jerusalem's Economic Win

First Indirect Talks End in Success? The US State Department announced on Sunday that the first round of indirect peace talks between Israel and the Palestinian Authority has been completed, saying that both Israel and the Palestinians had taken steps to create an atmosphere conducive to successful talks.

State Department spokesman P.J. Crowley said in a statement that US special envoy George Mitchell has left the Middle East after concluding talks characterized as "serious and wide-ranging."

Middle East Inside Line: Israel-Palestine Indirect Talks; Syrian-Turkey Meeting

Crowley said Israel had pledged not to build in the Ramat Shlomo neighborhood of East Jerusalem for two years and that Palestinian Authority leader Mahmoud Abbas vowed that he would work against incitement of any sort. He warned both parties:

As both parties know, if either takes significant actions during the proximity talks that we judge would seriously undermine trust, we will respond to hold them accountable and ensure that negotiations continue.

Sources close to Israeli Prime Minister Benjamin Netanyahu confirmed the situation in Ramat Shlomo.

However, on Sunday, Peace Now said that renovation work has recently begun for the construction of 14 housing units in an old Israel Police station in East Jerusalem, where plans are in the works for the largest Jewish neighborhood in that part of the city. The construction of 104 housing units is to be connected to an existing Jewish neighborhood, Ma'aleh Zeitim, and will be occupied by some 200 families.

"This is the first violation and first breach of the terms to start the indirect negotiations," said Abed Rabbo, the secretary of the Palestine Liberation Organization's Executive Committee. He added, "We will act immediately to stop this, because we will not agree that negotiations will be used as a cover for settlement activities."

Jerusalem Mayor Nir Barkat, meanwhile, vowed to continue "planning and construction throughout the city for all its residents". He said, "We trust that the prime minister will not allow a freeze in Jerusalem, not in words and not in actions."

Israel's Warning to the "Existential Threat": Addressing a conference on air power, Vice Prime Minister Moshe Ya'alon said on Monday that Israel has the technological capabilty to launch a military strike against Iran. He added:

There is no doubt that the technological capabilities, which improved in recent years, have improved range and aerial refueling capabilities, and have brought about a massive improvement in the accuracy or ordnance and intelligence.

This capability can be used for a war on terror in Gaza, for a war in the face of rockets from Lebanon, for war on the conventional Syrian army, and also for war on a peripheral state like Iran.

As far as I'm concerned, attack remains the best form of defense.

There is no doubt, looking at the overall situation, that we are already in a military confrontation with Iran. Iran is the main motivator of those attacking us.

Israel's Economic Victory: The Organization for Economic Cooperation and Development accepted Israel on Monday despite the reservations of Switzerland, Ireland, and Norway about Israel's membership.