JERUSALEM — Israel’s prime minister acknowledged Wednesday that his government has yet to iron out its differences with the U.S. over Israeli construction in east Jerusalem, a dispute that has stalled American efforts to restart Mideast peace talks.
Benjamin Netanyahu said both countries are working to find a solution but staunchly defended his government’s contentious settlement plans in the disputed holy city, calling them a long-standing Israeli policy.
“There are things we agree on, things we don’t agree on, things we are closing the gap on,” Netanyahu said of his talks with Washington. “We are making an effort.”
The worst crisis in U.S.-Israeli ties in years erupted last month when Israel announced plans during a visit by Vice President Joe Biden to build 1,600 homes for Jews in east Jerusalem, drawing condemnation from the U.S. and calls to cancel the construction.
The announcement also derailed U.S.-mediated indirect peace talks between the Israelis and Palestinians just before they were slated to start.
The Obama administration has pressured Israel to halt construction in Jewish neighborhoods in east Jerusalem and also has pushed for a broader building freeze in the West Bank.
Netanyahu on Tuesday dismissed talk of a crisis with Washington and accused the media of blowing the disagreement out of proportion — despite the tension in U.S.-Israeli ties.
“What is being published doesn’t fit what we are talking about,” he said. “Apparently the discussion between us is more serious and more to the point than what is generally believed.”
The Palestinians, meanwhile, are wary of Netanyahu and his hawkish coalition partners and have refused to resume direct negotiations until Israel halts all construction in the West Bank and east Jerusalem. The Palestinians claim those territories, along with the Gaza Strip, for their future state.
