Clinton delivers blunt message to Netanyahu on East Jerusalem

           U.S. Secretary of State Hillary Rodham Clinton has called Prime Minister Benjamin Netanyahu to complain bluntly about Israel's announcement this week of new housing units in east Jerusalem, a senior U.S. official said on Friday. The official said Clinton spoke with Netanyahu for 43 minutes on Friday to deliver a very strong message with regard to events over the past week. Israel is expected to take actions to improve the prospects for relaunching peace talks with the Palestinians, she said. The government's latest settlement plans were a "deeply negative signal" Clinton told Netanyahu, adding that the move had "undermined trust and confidence in the peace process". Israel's announcement took the U.S. by surprise, and overshadowed a visit by Vice President Joe Biden, who condemned it. It also enraged Palestinians and Arab states, jeopardizing indirect peace talks to be mediated by U.S. envoy George Mitchell. Interior Ministry officials announced on Tuesday a decision to approve 1,600 new homes in the ultra-Orthodox East Jerusalem neighborhood of Ramat Shlomo, just hours before Biden arrived in the counrty. "I condemn the decision by the government of Israel to advance planning for new housing units in East Jerusalem," Biden said during his visit. He added: "The substance and timing of the announcement, particularly with the launching of proximity talks, is precisely the kind of step that undermines the trust we need right now and runs counter to the constructive discussions that I've had here in Israel." Palestinian Authority chief negotiator Saeb Erekat said on Thursday that the Palestinians would refuse to resume indirect negotiations with Israel until the Netanyahu government redressed its policy on Jewish construction in East Jerusalem, media reported. (22,50)