Rice pays surprise visit to Beirut, says Washington supports solving Shebaa Farms issue

Syria, Israel conclude second round of indirect peace talks

Israeli delegation suggests Olmert-Assad meeting

Israel to continue house building in Jerusalem, says Olmert

Israeli authorities have approved a plan to build 40,000 new homes in Jerusalem, including in the annexed Arab eastern sector of the city, over the next decade, the municipality said.

The plan was approved by the National Planning and Building Committee, municipal officials said.

Municipality spokesman Yossi Gottesman declined to say how many of the housing units would be build in east Jerusalem, which Israel seized in the 1967 Middle East war and whose annexation is not recognized by the international community.

Gottesman said the city does not differentiate between the two sides of the city.

The building committee last week authorized construction of 1,300 new homes for Jewish settlers in east Jerusalem, infuriating Palestinians and drawing criticism from visiting US Secretary of State Condoleezza Rice.

A total of 245,000 Palestinians live in east Jerusalem alongside more than 200,000 Jewish settlers.

Continued Israeli settlement construction in the occupied West Bank and east Jerusalem is seen as a major hurdle in peace efforts.

For his part, Palestinian President Mahmoud Abbas said that Israeli plans to build 1,300 homes in East Jerusalem pose the "greatest obstacle" to Mideast peace.

His remarks followed a meeting with Secretary of State Condoleezza Rice, who has dubbed the Israeli settlement plans "simply not helpful."

Rice said she would raise the issue during talks with Israeli Foreign Minister Tzipi Livni.

Rice met with Livni, then traveled to the West Bank city of Ramallah to meet with Abbas. The U.S. is presently trying to prod Israeli and Palestinian leaders to forge a peace agreement.

The U.S., U.N. and Arab frameworks form the foundation "for a two-state solution where the two states will be living side by side in peace and security," Abbas said.

However, he added, "We consider settlements to be the greatest obstacle to the road of peace."

"The more the construction, the more are the obstacles in our way to reach a peace agreement," Abbas said.

Meanwhile, Israel will continue building houses in Jerusalem, local daily Yedioth Ahronoth reported on its website, citing Israeli Prime Minister Ehud Olmert.

Olmert made the remarks during a meeting with visiting U.S. Secretary of State Condoleezza Rice, who earlier slammed Israel's construction projects in the eastern part of Jerusalem.

"We are not confiscating additional Palestinian lands but building in Jewish neighborhoods in Jerusalem which are expected to remain in Israeli hands," Olmert was quoted as saying.

Regarding construction endeavors in the settlements, the prime minister said that Israel's policy has not changed.

"It remains as it was - and it was clarified to our counterparts, both American and Palestinian, long before the Annapolis conference and then again after it," said Olmert.

The Jerusalem Municipality said that Israel has decided to build tens of thousands of new apartments in Jerusalem, including several thousand in Jewish neighborhoods in Eastern Jerusalem.

The building proposal, which won city approval earlier this year, has been authorized by Israeli Interior Ministry's building and planning committee, local media reported, citing Jerusalem Municipality spokesman Gidi Schmerling.

The announcement came just as Rice was pressing Israel to stop construction in east Jerusalem during her latest peace mission in Israel.

Rice, who arrived in Israel to give another push for the sluggish peace process between the Jewish state and the Palestinian National Authority (PNA), said that Israel's continued settlement building could hurt Israeli-Palestinian peace negotiations.

Upon her arrival at Tel Aviv, Rice slashed Israel's latest announcement of a plan to build 1,300 houses for Jewish settlers in east Jerusalem, saying the "problem" is "simply not helpful to build confidence" between Israel and the PNA.

In response to Rice's words, Olmert's spokesman Mark Regev said "it is clear to everyone that the Jewish neighborhoods of Jerusalem will remain part of Israel in any possible final status agreement," adding that building inside those Jewish neighborhoods in no way contradicts Israel's commitment to move forward in the peace process.

Israel's settlement activities in Al-Quds (occupied East Jerusalem) undermine peace chances and fuel tensions, Arab League Secretary General Amr Moussa warned.

Al-Quds, which was captured by Israel in 1967 with the West Bank and Gaza, are occupied Arab lands and all make the lands of the Palestinian state, Moussa said.

US Secretary of State Condoleezza Rice pressed Israel to ease living conditions in the Occupied West Bank after warning that the growth of illegal settlements there and in Jerusalem was harming peace talks. Rice also raised the issue of the more-than-600 checkpoints and roadblocks scattered across the West Bank in a meeting with Israeli Defense Minister Ehud Barak.

Barak said he would consider the possibility of removing barriers on a case-by-case basis, but stressed that on the whole they were needed for security reasons, according to Defense Ministry officials.

The two were then joined by Palestinian Premier Salam Fayyad, who has been heading up efforts to revitalize the West Bank economy and the deployment of newly trained security Palestinian forces.

On her 17th trip to the region in less than two years, Rice again tried to inject fresh momentum into Middle East peace talks that were re-launched at a US conference in November but have made little visible progress.

"It's June. I expect that people are going to work harder and harder," Rice said, adding that Washington still hoped to see a comprehensive solution to the decades-old conflict by the end of 2008.

She also criticized Israel's continuing expansion of settlements in the Occupied West Bank and illegally annexed East Jerusalem, saying the projects were having a "negative effect" on the atmosphere of talks.

The Hamas Movement stated that US secretary of state Condoleezza Rice is leading a dangerous project based on reinforcing disputes and divisions among the peoples and the countries in the region in order for US to be able to seize their capabilities and impose its control over them.

In a press release received by the PIC, Fawzi Barhoum, a Hamas spokesman, underlined that Rice worked on igniting a civil war in the Palestinian arena to liquidate the democratic choice of the Palestinian people in the bud, so her visit to the Palestinian lands will not bring any good for the Palestinians; besides, it always carries a bad omen for them.

Barhoum also underscored that the PA chief, Mahmoud Abbas, will undergo a new test either to succumb to the pressures of the American administration or to work on strengthening the internal front and the Palestinian legitimacies in order to become an integrated force in the face of all challenges that are ravaging the national cause.

For his part, Dr. Sami Abu Zuhri, another spokesman for Hamas, said that the visit of the US secretary of state to the region is intended to revive the "peace process" and to push things towards reaching an agreement at the expense of the Palestinian rights and constants.

Dr. Abu Zuhri added in a statement to the PIC that the statements she made upon her arrival that the rocket attacks carried out from Gaza were no longer tolerated are aimed to cover up for the ongoing Israeli crimes and to portray the Palestinian people as the aggressors.

Regarding the calm issue, the spokesman underlined that a delegation of Hamas is currently in Cairo to hear from the Egyptians the Israeli reply to the truce overture which will be studied later by the Movement's leadership, reiterating that the delegation is not going to give a reply but would only receive the Israeli response.

US Secretary of State Condoleezza Rice made an unannounced visit to Lebanon to bolster the troubled country's new president, as rival politicians still struggle to form a new government.

Rice said she made her lightning trip to "express the United States' support for Lebanese democracy, for Lebanese sovereignty."

Her visit, under tight security, came amid persistent bickering between the Western- and Saudi-backed parliamentary majority and the Iranian- and Syrian-backed opposition over the promised formation of a broad cabinet of national unity.

An Arab-brokered agreement sealed in the Qatari capital Doha led to the election last month of army chief Michel Suleiman as a compromise choice for president, putting an end to 18 months of political deadlock that had brought the country to the brink of renewed civil war.

But the promised formation of a unity government in which the opposition would have 11 seats to the majority's 16 and wield veto power has yet to be implemented.

After talks with parliament speaker and opposition stalwart Nabih Berri, Rice said that she hoped the disputes over nominations for the key defense, interior, finance and foreign affairs portfolios which have delayed the new cabinet's formation would be swiftly resolved.

"We hope that the composition of the government proceeds and proceeds rapidly," she said.

She met Suleiman and told him Washington was very supportive of his presidency, describing him as a "very fine man."

She also met Prime Minister Fouad Siniora and parliamentary majority leader Saad Hariri.

"We talked of ... the United States' commitment to a Lebanon that is truly sovereign and independent where foreign interference and foreign intimidation should never be permitted," she said after that meeting.

She rejected accusations of US interference in Lebanese politics saying: "We support the democratically elected government of Lebanon. That is what we support."

Rice, who was in Beirut after a two-day visit to Israel and the occupied West Bank, rejected charges that the Doha deal was a slap in the face for US policy in the region as it had given the Iran- and Syrian-backed opposition veto power over government decisions.

"Obviously in any compromise there are compromises," she said. "But this was an agreement that I think serves the interest of the Lebanese people and since it serves the interest of the Lebanese people, it serves the interest of the United States."

The top US diplomat called for UN action on the disputed Shebaa Farms, a district that remains occupied by Israel but which the pro-opposition Shiite militant group Hezbollah has pledged to liberate and the pro-Western parliamentary majority also backs Lebanon's claim to.

"The United States believes that the time has come to deal with the Shebaa Farms issue... in accordance with (UN Security Council Resolution) 1701," Rice said after discussing the issue with the Western-backed premier.

"The time has come to deal with the Shebaa Farms issue," Rice said, referring to the patch of land where the borders of Lebanon, Syria and Israel meet.

She told reporters Washington intends to press Ban to "lend his good offices" to resolve the dispute over sovereignty over the district at the meeting place of the borders between Israel, Lebanon and Syria.

"The secretary general should intensify his efforts," she said.

Resolution 1701 brought an end to a devastating 33-day war between Israel and Hezbollah in summer 2006 and called for the UN secretary general to propose a border demarcation for the Shebaa Farms.

Rice last visited Lebanon during the devastating 2006 conflict that left more than 1,300 people dead, most of them Lebanese civilians.

At the time, she drew widespread criticism in the Arab world and elsewhere for describing the conflict as "the birth pangs" of a new Middle East.

Monday's visit came amid a thaw in relations between France and Syria, respectively Lebanon's former colonial power and its longtime powerbroker until Damascus pulled out its troops in 2005.

Rice last week expressed some reservations about the rapprochement but at the weekend said she was confident that France would send the right message to Syrian President Bashar al-Assad when he visits Paris next month.

Lebanese President Michel Suleiman said Lebanon aspires for maintaining best relations with Syria.

A statement issued by the media office at Lebanese Presidency mentioned that President Suleiman underlined during a meeting with US Secretary of State Condoleezza Rice the need to "reach a comprehensive and just solution to the conflict in the Middle East."

He called the US to help Lebanon restore the Lebanese sovereignty on the occupied Shebaa farms.

Asked how Washington viewed Hezbollah's recent political gains, Rice said the Doha deal had served Lebanese interests.

"If it served the interests of the Lebanese people, it served the interests of the United States," she added.

Rival Lebanese leaders reached the agreement only after Hezbollah fighters overran much of Beirut in early May. About 80 people were killed in fighting in the capital and elsewhere.

"I know that it has been a struggle for Lebanon to get to the election of its president but I come away knowing that Lebanon has succeeded in selecting a very fine man and we look forward to working with him," Rice said after meeting Suleiman.

Rice later held talks with Parliament Speaker Nabih Berri, a Shiite opposition leader allied with Hezbollah.

"I hope that Lebanon will have good relations with all of its neighbors ... on the basis of equality, sovereignty for Lebanon, respect for Lebanese democratic institutions," Rice said.

French President Nicolas Sarkozy made a brief visit to Beirut, showing his country's support for newly-elected Lebanese President Michel Suleiman and urging leaders of political factions to pursue "national reconciliation."

Sarkozy led a high-profile delegation that included his prime minister, foreign minister, defense minister and French opposition representatives. He is the first Western head of state to meet with Suleiman since he was elected president last month.

During his five-hour trip, Sarkozy met with President Suleiman at the presidential palace and had lunch with Suleiman and members of the various political factions in Lebanon. France, once a colonial presence in Lebanon, has long had a close relationship with the nation and has worked to help the country achieve political stability.

"President Suleiman has a big responsibility to achieve national reconciliation and it is essential for all Lebanese political parties to translate into reality their commitment to hold dialogue. There has been too much suffering in Lebanon," Sarkozy said.

Two aides to Israeli Prime Minister Ehud Olmert were in Turkey, apparently to start the second part of indirect talks between Israel and Syria being mediated by Ankara, reports said.

The officials were identified by media reports as Yoram Turbovitz and Shalom Turjeman, the aides who had participated in the first part of the negotiations.

The talks with Damascus began last month in "good faith", though Turkish officials shuttled between the representatives of the two sides who did not meet each other.

The talks in Turkey broke an eight-year hiatus on negotiations between the countries.

Olmert's office would not comment on the reports.

The last round of peace talks between Israel and Syria collapsed in January 2000, because of a dispute over the future of the Golan Heights, a strategic plateau overlooking northern Israel and whose return Syria insists on as a prerequisite for peace.

Polls have shown that any withdrawal from the territory would run into staunch opposition from the Israeli public. About 20,000 Israeli settlers live in the Golan, which was captured from Syria during the 1967 Middle East War.

Israel and Syria, which ended two days of indirect peace talks mediated by Turkey, want to continue their talks and agreed to meet regularly, the Turkish Foreign Ministry said in a statement.

"The talks took place in a constructive and positive atmosphere," the ministry statement said.

Israel and Syria said last month they had launched indirect peace talks mediated by Turkish officials, the first negotiations between the two sides in eight years.

Two days of peace talks involving Israel and Syria concluded and more talks were planned, officials said.

An Israeli official said the talks held in Turkey covered practical matters, without giving details.

Last month Israel, Turkey and Syria announced that indirect negotiations were in progress, with Turkish diplomats shuttling between the two delegations. This was the first round of talks since the announcement. The Israeli official, who is close to the talks, said the sides agreed to two more rounds with Turkish mediation. He spoke on condition of anonymity because the talks were not public.

Syria demands return of the Golan Heights, a strategic plateau captured by Israel in the 1967 war. In previous talks, Israel agreed in principle, but the two sides failed to come together on where the border should run. Israel also said that Syria was not offering full peace in return for such a pullback.

Both sides see potential benefits in resuming the negotiations now. The talks could bolster the position of Israeli Prime Minister Ehud Olmert, whose hold on power has been shaken by a corruption scandal, and Syria could emerge from Western isolation by negotiating for peace with Israel.

In Damascus, Syrian Foreign Minister Walid al-Moallem has described President Bashar al-Assad's policy regarding the developments in the region, particularly in Lebanon, Iraq and in Palestine "as a firm and realistic", reiterating Syria's firm and national stances regarding the Arab issues.

In his political review before the People's Assembly session held Monday, al-Moallem pointed out to Syria's efficient role in achieving Doha accord based on her care for Lebanon's security and stability.

He said that "the election of the Lebanese President Michel Suleiman constitutes the guarantee for Lebanon's stability and independence", adding that Syria supports the formation of the Lebanese national unity government without any foreign interference.

On the situation in Iraq, al-Moallem said that "the catastrophic situation in Iraq due to the American wrong policy concerns Syria", noting to Syria's readiness to cooperate with the Iraqi officials to achieve their national unity and maintain Iraq's sovereignty.

On the situation in the occupied Palestinian territories, he underlined that Syria condemns the Israeli policy against the Palestinian people, indicating that Syria, during the late Arab summit, called on the Palestinian parties to offer an imagination on resuming the Palestinian-Palestinian dialogue in order to enhance their national unity.

Regarding the indirect talks between Syria and Israel, he said that "Syria agreed on conducting indirect talks with Israel under Turkish auspices after the Turkish Prime Minister Recep Tayyip Erdogan has conveyed Israel's commitment to withdraw from the occupied Golan to the 4th June 1967 Line in line with the references of Madrid Peace Conference.

He expressed Syria's keenness for the discussions to be public, asserting that the second round of the indirect talks have finished.

On the Syrian Foreign policy, al-Moallem said that "President al-Assad started a number of Arab tours to achieve the aims of Damascus summit regarding the Arab solidarity and activating the Arab common action.

On the Syrian-French relations, he said that "the rapprochement between the two countries comes after France's consciousness of Syria's correct opinion and stances in finding solution to the Lebanese crisis", adding that "Syria will continue coordination with France to discuss issues of interest to the two states and the region".

In Brussels, EU nations agreed to strengthen relations with Israel but set no timeframe for negotiations amid fears of upsetting Arab states ahead of a Mediterranean summit next month.

Dimitrij Rupel, foreign minister of Slovenia, which holds the EU's presidency, said the European Union and Israel were "elevating our relations to a new level of more intense, more fruitful, more influential cooperation."

Meanwhile, Humanitarian and rights groups criticized an EU decision to boost relations with Israel, saying it failed to press hard enough for an improvement of living conditions for the Palestinians.

Monday's decision to improve ties "fails to effectively link it to ending the humanitarian crisis in the Gaza Strip and to ensuring respect for human rights throughout the occupied Palestinian territory and in Israel itself," the groups said in a joint statement.

"As Israel's pre-eminent trade partner, the EU must use the upcoming upgrade negotiations process to ensure Israel ends the ever-worsening Gaza blockade, lifts movement restrictions and halts settlement expansion in the West Bank, including east Jerusalem," said Adam Leach, regional manager for Oxfam International.

Kamel Jendoubi, who heads the Euro Mediterranean Human Rights Network said: "The EU must be consistent in upholding its human rights principles in its foreign relations, and Israel cannot be an exception to this rule."

Twelve Europe-based groups signed the statement.