Israel has approved the construction of almost 1,700 homes in occupied territory since renewing peace talks with the Palestinians at a US-hosted summit in November, an Israeli watchdog group reported Monday. The report came as the visiting US secretary of state, Condoleezza Rice, was wrapping up a visit to the region designed to breathe life into the talks. Peace Now said Israel was undermining negotiations by repeating one its “worst mistakes” – building on disputed land while holding peace talks. This revelation coincided with an announcement by Jerusalem authorities Monday to build 600 new homes in the occupied West Bank settlement of Pisgat Zeev. “The plan is part of a global initiative by the mayor of Jerusalem to build 40,000 housing units in the city to ease access to housing for young couples,” a municipality statement said. Such activity is illegal under international law and is one of the main stumbling blocks in peace talks between Israel and the Palestinians. Israeli construction projects in the disputed areas have sparked a series of crises in the peace negotiations, prompting the Palestinians at one point to suspend negotiations. In its report Monday, Peace Now said Israel's Defense Ministry has approved plans to build 946 homes in the West Bank since last November's peace summit in Annapolis, Maryland. Peace Now said the government has also given final approval for at least 750 homes in east Jerusalem since talks renewed. But US Secretary of State Condoleezza Rice said Monday that Mideast peace talks were “moving in the right direction” although she warned Israel that it should stop new settlement activities that could upset progress. Rice's comments came after she held talks with Palestinian President Mahmoud Abbas at the end of a three-day Mideast mission with the goal of achieving an agreement before President Bush leaves office next January. Asked, however, about Israel continuing to approve construction of new housing in contested territory, Rice criticized the close US ally. Also Monday, the Shas religious party said that Prime Minister Ehud Olmert has promised to build 800 homes in a West Bank Jewish settlement. __
