国际英语新闻：Israel, U.S. in row over East Jerusalem building plan

Israeli officials said Tuesday they were "astonished" by the timing of the plan's announcement, while Netanyahu is touring the United States and meeting with top officials.

But the statement issued Tuesday by Netanyahu's office defended Israel's right to build in Jerusalem, underlining that it has no bearing on ongoing efforts to resume the peace talks.

"Israel sees no connection between the diplomatic process and planning and building policy in Jerusalem, which has not changed in 40 years. During this period, peace agreements were signed with Egypt and Jordan, and for 17 years, diplomatic negotiations have been conducted with the Palestinians," the statement said.

It continued, "These are historical facts. Construction in Jerusalem has never hindered the peace process. The disagreements with the U.S. over Jerusalem are well-known. They are not new and have continued for 40 years. We hope to overcome them and continue to advance the diplomatic negotiations."

Washington, infuriated by the statement, responded immediately to the Israeli charges. State Department spokesman Philip Crowley said "there clearly is a link in the sense that it is incumbent upon both parties. They are responsible for creating conditions for a successful negotiation."

Stressing that the announcement of the new construction plan will influence the Palestinian position, Crowley said the U.S. understands that Israel has its own point of view, but "such announcements, at this time, contradict our efforts to bring the parties to direct negotiations."

The European Union earlier Tuesday added its criticism of the plan to build new homes in East Jerusalem, urging Israel to reconsider it.

"This plan contradicts the efforts by the international community to resume direct negotiations and the decision should be reversed," EU foreign policy chief Catherine Ashton said in a statement.

"Settlements are illegal under international law, constitute an obstacle to peace and threaten to make a two-state solution impossible," she added.

Obama toned down his critique of Israel on Wednesday, saying that the U.S. "will spare no effort to achieve a just outcome" in talks between Israelis and Palestinians.

He also said that while both sides restarted direct talks, the Middle East peace process still faces "enormous obstacles," adding that it is within the interest of all parties involved to achieve "two states, Israel and Palestine, living side by side in peace and security."