Netanyahu: There will be no construction freeze

By AMY TEIBEL, Associated Press Writer

JERUSALEM – Israeli Prime Minister Benjamin Netanyahu rebuffed U.S. demands for a total West Bank settlement freeze on Monday, digging in his heels before a crucial meeting with Washington's special Mideast envoy.

Netanyahu told parliament's powerful foreign affairs and defense committee that Israel would consider suspending any new plans to build in the West Bank for a limited time, according to a meeting participant.

But Netanyahu said he would allow approved construction plans to go ahead in order to strike a balance between Israel's desire to resume talks with the Palestinians while at the same time enabling "normal life" in the settlements, a euphemism for building to accommodate the growing settler population.

Israel will continue to build some 3,000 apartments that have already been approved, and will also keep building without restrictions in east Jerusalem, Netanyahu said, according to the meeting participant.

He spoke on condition of anonymity because the meeting's contents were not officially made public.

Netanyahu has voiced the same position recently, but the timing of his comments — a day before huddling with U.S. envoy George Mitchell — gave them an added note of defiance. Washington has urged Israel to freeze all settlement activity in the West Bank and east Jerusalem, which the Palestinians claim as part of a future state.

Israel captured those territories in the 1967 Mideast war, and nearly half a million Israelis now live in them. The Palestinians say they won't resume negotiations with Israel until all Israeli construction in those territories stops.

With his offer of a limited settlement freeze, Netanyahu is trying to please the U.S. without alienating a coalition government dominated by hardline supporters of the settlements. It remains unclear whether the balancing act can succeed.

Both Netanyahu and Palestinian President Mahmoud Abbas are traveling to New York next week to attend the opening of the U.N. General Assembly. Israeli and Palestinian officials have spoken of a possible meeting between the two leaders on the sidelines of the U.N. event, but that would depend on the outcome of Mitchell's visit to the region.

The U.S. envoy is to meet with both leaders on Tuesday to try to wrest enough overtures from both to allow a meeting to take place. It would be the first face-to-face encounter between the two since the hawkish Netanyahu was installed as Israel's prime minister in March.

Netanyahu replaced Ehud Olmert, who held talks with Abbas before being forced out of office under a cloud of corruption allegations. On Monday, Israel's justice ministry said Olmert's corruption trial will begin on Sept. 29 in Jerusalem.

Olmert was indicted last month for illegally accepting funds from an American supporter and double-billing Jewish groups for trips abroad, among other charges. He has denied any wrongdoing.